Why Is Iovance Biotherapeutics (IOVA) Down 21.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Iovance Biotherapeutics (IOVA). Shares have lost about 21.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Iovance Biotherapeutics 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.
Q2 Earnings Beat, Sales Miss Estimates
Iovance incurred a loss of 47 cents per share in second-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of 81 cents. In the year-ago quarter, the company reported a loss of 63 cents.
During the quarter, the company generated total revenues of $0.2 million — entirely from Proleukin product sales. The reported sales missed the Zacks Consensus Estimate of $6 million. In the year-ago quarter, Iovance did not record any revenues.
Quarter in Detail
Research & development expenses were $86.3 million, up 18% from the year-ago quarter’s levels. The upside was primarily due to increased related personnel costs and facility building costs.
General and administrative expenses declined 17% from the prior-year quarter’s figure to $21.9 million. This downside can be attributed to the capitalization of expenses associated with the Proleukin acquisition upon transaction completion.
The company had $317.3 million in cash, cash equivalents, short-term investments and restricted cash as of Jun 30, 2023, compared with $632.7 million on Mar 31, 2023. This cash balance, combined with the net equity proceeds of $161.4 million raised in July 2023, is expected to fund the company’s current and planned operations until the end of 2024.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 9.18% due to these changes.
VGM Scores
At this time, Iovance Biotherapeutics 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.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Iovance Biotherapeutics 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
Iovance Biotherapeutics is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Blueprint Medicines (BPMC), a stock from the same industry, has gained 4.3%. The company reported its results for the quarter ended June 2023 more than a month ago.
Blueprint Medicines reported revenues of $57.57 million in the last reported quarter, representing a year-over-year change of +57.5%. EPS of -$2.19 for the same period compares with -$2.68 a year ago.
For the current quarter, Blueprint Medicines is expected to post a loss of $2.39 per share, indicating a change of -7.2% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.7% over the last 30 days.
Blueprint Medicines has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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Iovance Biotherapeutics, Inc. (IOVA) : Free Stock Analysis Report
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