Why Is Achillion (ACHN) Down 1.4% Since Last Earnings Report?
A month has gone by since the last earnings report for Achillion Pharmaceuticals (ACHN). Shares have lost about 1.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Achillion 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 catalysts.
Achillion Reports Wider-Than-Expected Q1 Loss
Achillion incurred a loss of 14 cents per share in the first quarter of 2019, wider than the Zacks Consensus Estimate of a loss of 13 cents. However, it was narrower than the year-ago loss of 15 cents.
The company generated no revenues in the reported quarter.
Research and development (R&D) expenses increased nearly 5.7% from the year-earlier period to $14.8 million, primarily due to increased research costs related to pipeline candidates ACH-4471 and ACH-5228, partially offset by lower personnel costs.
General and administrative expenses declined 13.3% year over year to $5.2 million due to lower legal fees and stock-based compensation.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a downward path over the past two months. The consensus estimate has shifted -7.69% due to these changes.
VGM Scores
Currently, Achillion has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, 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.
Outlook
Achillion has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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