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Why Is Allogene Therapeutics (ALLO) Down 17.5% Since Last Earnings Report?

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A month has gone by since the last earnings report for Allogene Therapeutics (ALLO). Shares have lost about 17.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Allogene Therapeutics 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.

Allogene’s Q1 Earnings & Sales Top Estimates

Allogene incurred loss of 25 cents per share in first-quarter 2021, narrower than the Zacks Consensus Estimate of 48 cents as well as the year-ago quarter’s loss of 50 cents.

The company recorded revenues of $38.3 million, during the quarter, beating the Zacks Consensus Estimate of $24.5 million. It recorded the full amount per a license agreement with Allogene Overland. The company did not record any revenues in the year-ago quarter.

Quarter in Detail

Research & development (R&D) expenses were $55.2 million, up 31.3% from the year-ago quarter.

General and administrative (G&A) expenses increased 4.6% year over year to $16.4 million.

The company had $964.2 million in cash, cash equivalents and investments as of Mar 31, 2021, compared with $1 billion at the end of Dec 30, 2020

Maintains 2021 Guidance

Allogene maintained its previous guidance for operating expenses for 2021, which is expected to be between $300 million and $330 million.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

VGM Scores

At this time, Allogene Therapeutics has an average Growth Score of C, however its Momentum Score is doing a lot better with an 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

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


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