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Intrexon (XON) Down 9.2% Since Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Intrexon Corporation XON. Shares have lost about 9.2% in that time frame.

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

Intrexon Q1 Loss Narrower Than Expected, Revenues Miss

Intrexon reported adjusted loss of 17 cents per share (excluding one time and special items) in the first quarter of 2018, narrower than the Zacks Consensus Estimate of a loss of 24 cents. Loss was also narrower than the year ago loss of 26 cents.

Total revenues came in at $43.8 million, down 18.4% year over year. Reported revenues missed the Zacks Consensus Estimate of $55 million.

Quarter in Detail

Intrexon’s sales primarily consist of collaboration and licensing revenues as well as product and service revenues.

Collaboration and licensing revenues decreased 27.3% to $24.1 million year over year. This was due to lower research and development services for some of the company's ECCs.

While product revenues came in at $7.2 million, up 12% from the year-ago period, service revenues amounted to $12.2 million, up 1.8% year over year.

Meanwhile, the company is developing several candidates in partnership with other companies.

ActoBio Therapeutics and collaborator Intrexon T1D Partners, LLC, were granted allowance by the FDA for their investigational new drug (“IND”) application to initiate a Phase Ib/IIa study for the treatment of early onset type I diabetes with AG019, an innovative disease-modifying approach to induce immune tolerance.

The company’s collaborator Fibrocell Science, Inc. obtained allowance from the FDA to begin clinical studies for FCX-013, its gene therapy candidate for the treatment of moderate to severe localized scleroderma.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates. There have been two revisions higher for the current quarter

Intrexon Corporation Price and Consensus

 

Intrexon Corporation Price and Consensus | Intrexon Corporation Quote

VGM Scores

At this time, XON has a poor Growth Score of F, however its Momentum is doing a lot better with a B. However, the stock was also 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 based on our styles scores.

Outlook

Estimates have been trending upward for the stock and the magnitude of these revisions indicates a downward shift. Notably, XON has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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