It has been about a month since the last earnings report for ImmunoGen (IMGN). Shares have added about 14.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is ImmunoGen due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
ImmunoGen Misses Earnings & Revenue Estimates in Q1
ImmunoGen reported loss of 17 cents per share for the first quarter of 2020, which was wider thanthe Zacks Consensus Estimate of a loss of 15 cents. However, it was narrower than the year-ago loss of 30 cents. The bottom-linefigure includes a restructuring charge of $0.8 million.
Revenues came in at $13.3 million, which also missed the Zacks Consensus Estimate of $29 million. Revenues, however, increased from the year-ago quarter figure of $8.6 million.
Quarter in Details
First-quarter revenues included $13 million in non-cash royalty revenues, up 53.1% year over year. License and milestone fees were $0.3 million compared with $0.1 million in the year-ago period.
During the quarter, research and development expenses decreased 29.5% from the year-ago level to $27.4 million due to restructuring initiatives, partially offset by higher expenses related to clinical studies. General and administrative expenses decreased 17.8% to $8.9 million in the first quarter of 2020, reflecting restructuring benefits.
ImmunoGen’s cash and cash equivalents increased to $247.3 million at the end of March 2020 compared with $176.2 million at the end of December 2019. The increase was due to addition of net proceeds of $97.7 million from a public offering of the company’s common stock.
2020 Guidance Maintained
ImmunoGen maintained its guidance for 2020, provided previously on the fourth-quarter earnings call. The company expects revenues for the full year to be between $60 million and $65 million. It expects operating expense to be in the range of $165-$170 million. The company expects cash and cash equivalents to be between $170 million and $175 million at 2020 end.
It expects cash resources to be enough to fund its operations through the second half of 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 -8.25% due to these changes.
At this time, ImmunoGen has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending downward for the stock, and the magnitude of this revision has been net zero. Notably, ImmunoGen has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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