It has been about a month since the last earnings report for Achillion Pharmaceuticals (ACHN). Shares have added about 25.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Achillion due for a pullback? 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.
Achillion Reports Narrower-Than-Expected Q4 Loss
Achillion incurred a loss of 12 cents per share in the fourth quarter of 2018, narrower than the Zacks Consensus Estimate of a loss of 15 cents and the year-ago loss of 17 cents.
The company generated no revenues in the reported quarter.
Research and development (R&D) expenses decreased nearly 20.8% from the year-earlier period to $12.2 million, primarily due to decreased personnel costs and low research costs related to ACH-5228.
General and administrative expenses declined 33.7% year over year to $5.9 million, due to payment of underwriting fees.
Full Year Results
With no marketed drugs, Achillion did not generate any revenues in 2018. The company incurred a loss of 51 cents per share for the full year, narrower than the year-ago loss of 61 cents per share.
Achillion expects its net cash usage to be approximately $80 million in 2019 based on current operating plans, anticipated timelines and the estimated costs of clinical trials and product development programs.
How Have Estimates Been Moving Since Then?
Fresh estimates followed an upward path over the past two months. The consensus estimate has shifted 18.18% due to these changes.
Currently, Achillion has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the bottom 20% 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.
Achillion has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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