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Why Is Spectrum Pharma (SPPI) Down 14.4% Since Last Earnings Report?

Zacks Equity Research

It has been about a month since the last earnings report for Spectrum Pharmaceuticals (SPPI). Shares have lost about 14.4% in that time frame, underperforming the S&P 500.

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

Spectrum Q1 Earnings Lag Estimates, Revenues Nil

Spectrum Pharmaceuticals incurred adjusted loss of 27 cents per share in the first quarter of 2019, wider than the Zacks Consensus Estimate of a loss of 23 cents. However, the loss was in line with the year-ago quarter.

The company did not record any revenues in the first quarter. The Zacks Consensus Estimate was pegged at $20.45 million.

Quarter in Detail

Adjusted research & development (R&D) expenses were $20.4 million, up 60.5% from the year-ago quarter.

Adjusted selling, general and administrative (SG&A) spending was down 25.5% to $10.7 million.

How Have Estimates Been Moving Since Then?

Fresh estimates followed an upward path over the past two months. The consensus estimate has shifted 18.18% due to these changes.

VGM Scores

At this time, Spectrum Pharma has a poor Growth Score of F, 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 lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. 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 #3 (Hold). We expect an in-line return from the stock in the next few months.



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