A month has gone by since the last earnings report for Clovis Oncology (CLVS). Shares have lost about 17.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Clovis 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.
Clovis Q1 Earnings and Revenues Surpass Estimates
Clovis incurred loss of $1.28 per share for the first quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of $1.29 and the year-ago loss of $1.63 per share.
Net revenues, entirely from Rubraca, were up almost 28.5% year over year to $42.6 million in the quarter, beating the Zacks Consensus Estimate of $41.8 million. Sales were up 8.4% sequentially.
Quarter in Details
Sales of Rubracain the United States were $39.3 million, compared with$31.9 million in the first quarter of 2019. Ex-U.S. market sales were $3.3 million in the first quarter compared with $3.2 million the fourth quarter of 2019.
In the first quarter, research & development expenses increased 10% year over year to $68.2 million, mainly due to higher costs related to Rubraca label expansion studies. Selling, general and administrative expenses declined 10.9% year over year to $42.6 million primarily driven by lower commercialization expenses for Rubraca in the U.S. and Europe
Clovis ended the quarter with $228.4 million of cash equivalents and available-for-sale securities compared with $296.7 million as of Dec 31, 2019.
The company expects its cash resources to be enough to support its operations in the second half of 2021.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 13.95% due to these changes.
At this time, Clovis 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Clovis has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Clovis Oncology, Inc. (CLVS) : Free Stock Analysis Report
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