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Inovio (INO) Down 16.1% Since Last Earnings Report: Can It Rebound?

Zacks Equity Research

A month has gone by since the last earnings report for Inovio Pharmaceuticals (INO). Shares have lost about 16.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Inovio due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Inovio Q2 Earnings & Revenues Fall Shy of Estimates

Inovio incurred a loss of 30 cents per share in second-quarter 2019, wider than the Zacks Consensus Estimate of a loss of 28 cents and also the year-ago loss of 8 cents.

The company’s revenues of $0.1 million significantly missed the Zacks Consensus Estimate of $5 million. The top line plunged a massive 99% from the year-ago quarter’s figure of $24.4 million, due to the recognition of a $23-million up-front payment received from ApolloBio in the year-ago quarter. Notably, in second-quarter 2018, ApolloBio had gained the rights to develop/commercialize VGX-3100 for the treatment of HPV-related precancers in Greater China, which triggered the payment.

Research and development expenses were $22.5 million in second-quarter 2019, flat year over year.

General and administrative expenses dropped 18.1% to $5.9 million in the quarter under review owing to lower foreign non-income taxes and advisory fees.

How Have Estimates Been Moving Since Then?

Fresh estimates followed an upward path over the past two months. The consensus estimate has shifted -5.26% due to these changes.

VGM Scores

At this time, Inovio has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, 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.

Outlook

Inovio has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.



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