Infinity Pharmaceuticals (INFI) Down 5.3% Since Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Infinity Pharmaceuticals, Inc. INFI. Shares have lost about 5.3% in the past month, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Infinity Reports Narrower-than-Expected Loss in Q1
Infinity reported a loss of $0.21 per share in first-quarter 2017, narrower than the Zacks Consensus Estimate of loss of $0.22. Also, the company had reported loss of $0.82 in the year-ago quarter.
Since Infinity does not have any approved product in its portfolio, the company earns revenues in the form of royalties, license and milestone payments as well as research and development (R&D) support fees paid by its partners.
Infinity did not record any revenue during first-quarter 2017. But it had recorded collaboration revenue of $9.3 million in the year-ago quarter, related to Infinity's previous collaboration agreement with AbbVie Inc.
Quarter in Detail
In the reported quarter, Research and Development (R&D) expenses plummeted 89.7% to $4.03 million. The decline was mainly related to a decrease in clinical development expenses for duvelisib in addition to the company's 2016 restructuring activities.
General and administrative (G&A) expenses were $6.44 million for the reported quarter, down 40.6% year over year. The decrease was mainly due to the company's 2016 restructuring activities.
Currently, Infinity is evaluating IPI-549 as a monotherapy and in combination with Opdivo (nivolumab) in a phase I study in patients with advanced solid tumors.
The company anticipates completing the monotherapy dose-escalation phase of the study in the first half of 2017. Also, it expects to initiate patient enrolment in the monotherapy expansion cohort in the second half of 2017. In addition, it plans to complete the dose-escalation phase evaluating IPI-549 in combination with Opdivo in the same period, and initiate multiple combination expansion cohorts as well.
2017 Outlook
In 2017, Infinity expects net loss to be in the range of $40 million to $50 million. The Zacks Consensus Estimate is pegged at a loss of $1.03 per share. Moreover, the company anticipates ending 2017 with year-end cash and cash equivalents and available-for-sale securities balance in $40 million to $50 million band.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Infinity Pharmaceuticals, Inc. Price and Consensus
Infinity Pharmaceuticals, Inc. Price and Consensus | Infinity Pharmaceuticals, Inc. Quote
VGM Scores
At this time, Infinity Pharmaceuticals' stock has a poor Growth Score of 'F', however its momentum is doing a lot better with an 'A'. The stock was allocated a grade of 'F' on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum investors based on our style scores.
Outlook
Notably, the stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.
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