More than a month has gone by since the last earnings report for Aduro Biotech, Inc. ADRO. Shares have lost about 6.8% in that time frame.
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 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 drivers.
Aduro Q2 Loss Narrower than Expected, Revenues Top
Aduro BioTech reported second-quarter 2017 loss per share of 27 cents, narrower than the Zacks Consensus Estimate of a loss of 36 cents. However, the company reported earnings per share of 3 cents a year ago.
Quarterly revenues plunged 84.9% year over year to $5.9 million. This top-line deterioration was mainly due to the recognition of a milestone payment of $35 million in the second quarter of 2016, pursuant to an agreement with Novartis for development of ADU-S100 in combination with anti-PD1 checkpoint inhibitor. However, the decrease was partially offset by a recognition of $2 million milestone payment under collaboration with Merck with a view to investigate CRS-207 combined with Keytruda. Revenues surpassed the Zacks Consensus Estimate of $4 million.
Research and development expenses reduced substantially 20.4% in the quarter to $21.4 million, mainly owing to lower expenses, related to the manufacturing of GVAX pancreas and pancreatic cancer clinical study in the second quarter this year.
General and administrative expenses were $8.2 million, down 4.6% year over year on the back of lower consulting and professional fees.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the past month as none of them issued any earnings estimate revisions.
Aduro Biotech, Inc. Price and Consensus
Aduro Biotech, Inc. Price and Consensus | Aduro Biotech, Inc. Quote
At this time, Aduro Biotech's stock has a poor Growth Score of F, however its Momentum is doing a lot better with a A. However, the stock was allocated a grade of F on the value side, putting it in the lowest 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.
The stock has a Zacks Rank #2 (Buy). We are expecting an above average return from the stock in the next few months.
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