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Why Is ImmunoGen (IMGN) Down 26% Since Last Earnings Report?

Zacks Equity Research
In the latest trading session, Match Group (MTCH) closed at $73.08, marking a +0.07% move from the previous day.

A month has gone by since the last earnings report for ImmunoGen (IMGN). Shares have lost about 26% in that time frame, underperforming the S&P 500.

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

ImmunoGen Misses Earnings & Revenue Estimates in Q1

ImmunoGen reported adjusted loss of 30 cents per share for the first quarter of 2019, wider than the Zacks Consensus Estimate of a loss of 28 cents. The bottom line remained flat year over year.

Revenues came in at $8.6 million in the quarter, missing the Zacks Consensus Estimate of $10.82 million. Revenues declined from the year-ago quarter figure of $19.8 million as the first quarter of 2018 included $11.5 million in upfront and milestone payments. Revenues in the first quarter of 2019 included $8.5 million in non-cash royalty revenues. Revenues from R&D support and clinical materials were $0.4 million and $0.7 million, respectively.

Operating Expenses & Cash Details

Research and development expenses decreased almost 13.2% from the year-ago level to $38.9 million due to lower costs related to clinical development of its lead pipeline candidate, mirvetuximab soravtansine. General and administrative (G&A) expenses were up 8% to $10.8 million in the first quarter of 2019.

ImmunoGen’s cash and cash equivalents decreased to $270.4 million at the end of March 2019 compared with $262.3 million at the end of December 2018.

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 13.77% due to these changes.

VGM Scores

At this time, ImmunoGen has a strong Growth Score of A, a grade with the same score on the momentum front. However, 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 B. 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 this revision looks promising. 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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