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Why Is Clovis (CLVS) Up 4.4% Since Last Earnings Report?

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Zacks Equity Research
·3 min read
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It has been about a month since the last earnings report for Clovis Oncology (CLVS). Shares have added about 4.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Clovis 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.

Clovis Q4 Earnings Miss Estimates, Revenues Beat

Clovis incurred loss of $1.02 per share for the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of 76 cents. However, loss was narrower than the year-ago loss of $1.81 per share.

Net revenues, entirely from Clovis’ only marketed drug, Rubraca, were up almost 10.2% year over year to $43.3 million in the quarter, slightly beating the Zacks Consensus Estimate of $43.2 million.

Quarter in Details

Sales of Rubraca, in the United States were $36.4 million, compared with $36.1 million in the fourth quarter of 2019. Ex-U.S. market sales were $6.9 million in the fourth quarter compared with $3.2 million in the year-ago quarter.

In the fourth quarter, research & development expenses decreased 21.8% year over year to $56.7 million, primarily due to lower spending on Rubraca clinical studies. Selling, general and administrative expenses declined 9.7% year over year to $40.8 million, driven by cost-saving initiatives and savings due to the COVID-19 situation globally.

Clovis ended the quarter with $240.2 million of cash equivalents and available-for-sale securities compared with $224.7 million as of Sep 30, 2020.

The company expects its cash resources, along with anticipated revenues and available financing sources, to be enough to support its operations in early 2023.

Full-Year Results

Clovis reported revenues of $164.5 million, up 12.4% year over year. The company incurred a loss of $4.38 per share in 2020, 41% narrower than the year-ago period.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 7.19% due to these changes.

VGM Scores

Currently, Clovis has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth 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 trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Clovis has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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