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Why Is Spectrum Pharma (SPPI) Up 6.6% Since Last Earnings Report?

Zacks Equity Research

A month has gone by since the last earnings report for Spectrum Pharmaceuticals (SPPI). Shares have added about 6.6% in that time frame, underperforming the S&P 500.

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

Spectrum Pharma Incurs Wider-Than-Expected Q1 Loss

Spectrum Pharmaceuticals’ first-quarter 2020 loss of 36 cents per share was wider than the Zacks Consensus Estimate of a loss of 34 cents.

The company did not record any revenues during the quarter. The Zacks Consensus Estimate for revenues was pegged at $0.3 million.

Quarter in Detail

Adjusted selling, general and administrative (SG&A) expenses were $10.8 million, up 1.4% from the year-ago quarter.

Adjusted research & development (R&D) expenses were down 28.7% to $14.6 million.

How Have Estimates Been Moving Since Then?

Fresh estimates followed an upward path over the past two months.

VGM Scores

At this time, Spectrum Pharma has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Spectrum Pharma has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.



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