A month has gone by since the last earnings report for ImmunoGen (IMGN). 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 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 its most recent earnings report in order to get a better handle on the important drivers.
ImmunoGen Beats Q2 Earnings & Revenue Estimates
ImmunoGen reported loss of 14 cents per share for the second quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of 18 cents and the year-ago loss of 29 cents. The bottom-line figure includes a restructuring charge of $0.7 million.
Revenues came in at $15 million, which also beat the Zacks Consensus Estimate of $14 million. Revenues, however, decreased from the year-ago quarter figure of $15.5 million.
Quarter in Details
For the second quarter, Immunogen reported license and milestone fees of $0.9 million compared with $5.1 million in the year-ago period. The company had recorded a milestone payment of a $5 million from a partner.
Second-quarter revenues included $14.1 million in non-cash royalty revenues, up 35.2% year over year.
During the quarter, research and development expenses decreased 19.7% from the year-ago level to $22.9 million due to restructuring initiatives, partially offset by higher expenses related to clinical studies. General and administrative expenses increased 12.3% to $9.8 million in the second quarter of 2020.
ImmunoGen’s cash and cash equivalents increased to $219.5 million at the end of June 2020 compared with $247.3 million at the end of March 2020.
2020 Guidance Maintained
ImmunoGen maintained its guidance for 2020, provided on the second-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 quarter of 2022.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
Currently, ImmunoGen has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, 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 F. 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 these revisions indicates a downward shift. 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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