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Why Is Apellis Pharmaceuticals, Inc. (APLS) Down 9.8% Since Last Earnings Report?

A month has gone by since the last earnings report for Apellis Pharmaceuticals, Inc. (APLS). Shares have lost about 9.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Apellis Pharmaceuticals, Inc. 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.

Apellis Q2 Earnings and Sales Miss Estimates

Apellis reported a loss per share of $1.46 in second-quarter 2022, wider than the Zacks Consensus Estimate of a loss of $1.43. The company reported a loss of $2.72 per share in the year-ago quarter.

Total revenues were $16.3 million, missing the Zacks Consensus Estimate of $17 million. Revenues in the reported quarter included sales of marketed drug Empaveli (pegcetacoplan), which were $15.7 million, and $0.6 million under the collaboration with Swedish Orphan Biovitrum (Sobi). In the year-ago quarter, the company reported revenues of $1.0 million.

Quarter in Detail

Research and development expenses were $101.7 million in the second quarter of 2022 compared with $145.9 million in the year-ago quarter. The decline can be primarily attributed to decreased cost of manufacturing expenses and the $50 million cost of research collaboration with Beam Therapeutics.

General and administrative expenses were $63.2 million in the second quarter of 2022 compared with $49 million in the year-ago quarter, driven by employee-related expenses and general commercialization activities.

As of Jun 30, 2022, Apellis had cash, cash equivalents and marketable securities worth $852.8 million compared with $965.3 million as of Mar 31, 2022.

How Have Estimates Been Moving Since Then?

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

The consensus estimate has shifted -9.48% due to these changes.

VGM Scores

At this time, Apellis Pharmaceuticals, Inc. has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

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

Performance of an Industry Player

Apellis Pharmaceuticals, Inc. belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Biohaven Pharmaceutical Holding Company Ltd. (BHVN), has gained 1.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.

Biohaven Pharmaceutical Holding Company Ltd. reported revenues of $215.08 million in the last reported quarter, representing a year-over-year change of +131.4%. EPS of -$6.21 for the same period compares with -$3.23 a year ago.

Biohaven Pharmaceutical Holding Company Ltd. is expected to post a loss of $2.35 per share for the current quarter, representing a year-over-year change of +10.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +5.3%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Biohaven Pharmaceutical Holding Company Ltd. Also, the stock has a VGM Score of D.


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