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Exelixis (EXEL) Down 14.8% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Exelixis (EXEL - Free Report) . Shares have lost about 14.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Exelixis 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.
Exelixis Misses on Q3 Earnings & Revenues, Tweaks View
Exelixis reported earnings of 12 cents in the third quarter, which missed the Zacks Consensus Estimate of 19 cents. In the year-ago quarter, the company had reported a loss of 10 cents per share.
Excluding stock-based compensation expense, earning per share came in at 20 cents, up from 4 cents in the year-ago quarter.
Net revenues came in at $328.4 million, which increased from $231 million reported in the year-ago quarter but missed the Zacks Consensus Estimate of $366 million.
Quarter in Detail
Net product revenues came in at $263.1 million, up from $168.6 million reported in the year-ago quarter. The upside was primarily led by an increase in sales volume that was primarily driven by the strong uptake for the combination therapy of Cabometyx (cabozantinib tablets) and Opdivo (nivolumab) following FDA approval in January.
Cabometyx generated revenues of $259.8 million. Cabometyx is approved for advanced renal cell carcinoma (RCC) and previously treated hepatocellular carcinoma (HCC). Cometriq (cabozantinib capsules) for the treatment of medullary thyroid cancer generated $3.3 million in net product revenues. Exelixis earned $27.1 million in royalty revenues.
Collaboration revenues, comprising license revenues and collaboration services revenues, were $15.6 million in the quarter compared with $29.3 million in the year-ago quarter.
In the reported quarter, research and development expenses decreased to $163.4 million from the year-ago quarter’s $176.8 million due to a decline in clinical trial costs. Selling, general and administrative expenses were $101.6 million, up from $88.2 million.
Pipeline Update
In September, Exelixis obtained FDA approval for Cabometyx for the treatment of adult and pediatric patients 12 years of age and older with locally advanced or metastatic differentiated thyroid cancer (DTC) that has progressed following prior vascular endothelial growth factor receptor-targeted therapy and who are RAI-refractory or ineligible.
Exelixis also expanded its discovery and licensing collaboration agreement with Invenra to include an additional 20 oncology targets.
In October, Exelixis’ partner Aurigene exercised its exclusive option to in-license XL114 (formerly AUR104) under their July 2019 collaboration, option and license agreement. Consequently, Exelixis assumed responsibility for all subsequent clinical development, manufacturing and commercialization of the compound, which inhibits the CARD11-BCL10-MALT1 signaling pathway that promotes lymphocyte survival and proliferation. Following the FDA’s recent acceptance of Exelixis’ IND, the company plans to initiate a phase I study of XL114 as a monotherapy in patients with non-Hodgkin’s lymphoma.
2021 Guidance Updated
Revenues are now projected at $1,300-$1,350 million (previous projection: $1,300-$1,400 million) while product revenues are estimated in the range of $1,050-$1,100 million (previous projection: $1,050-$1,150 million).
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -58.73% due to these changes.
VGM Scores
At this time, Exelixis has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second 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 broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Exelixis has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Exelixis (EXEL) Down 14.8% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Exelixis (EXEL - Free Report) . Shares have lost about 14.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Exelixis 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.
Exelixis Misses on Q3 Earnings & Revenues, Tweaks View
Exelixis reported earnings of 12 cents in the third quarter, which missed the Zacks Consensus Estimate of 19 cents. In the year-ago quarter, the company had reported a loss of 10 cents per share.
Excluding stock-based compensation expense, earning per share came in at 20 cents, up from 4 cents in the year-ago quarter.
Net revenues came in at $328.4 million, which increased from $231 million reported in the year-ago quarter but missed the Zacks Consensus Estimate of $366 million.
Quarter in Detail
Net product revenues came in at $263.1 million, up from $168.6 million reported in the year-ago quarter. The upside was primarily led by an increase in sales volume that was primarily driven by the strong uptake for the combination therapy of Cabometyx (cabozantinib tablets) and Opdivo (nivolumab) following FDA approval in January.
Cabometyx generated revenues of $259.8 million. Cabometyx is approved for advanced renal cell carcinoma (RCC) and previously treated hepatocellular carcinoma (HCC). Cometriq (cabozantinib capsules) for the treatment of medullary thyroid cancer generated $3.3 million in net product revenues. Exelixis earned $27.1 million in royalty revenues.
Collaboration revenues, comprising license revenues and collaboration services revenues, were $15.6 million in the quarter compared with $29.3 million in the year-ago quarter.
In the reported quarter, research and development expenses decreased to $163.4 million from the year-ago quarter’s $176.8 million due to a decline in clinical trial costs. Selling, general and administrative expenses were $101.6 million, up from $88.2 million.
Pipeline Update
In September, Exelixis obtained FDA approval for Cabometyx for the treatment of adult and pediatric patients 12 years of age and older with locally advanced or metastatic differentiated thyroid cancer (DTC) that has progressed following prior vascular endothelial growth factor receptor-targeted therapy and who are RAI-refractory or ineligible.
Exelixis also expanded its discovery and licensing collaboration agreement with Invenra to include an additional 20 oncology targets.
In October, Exelixis’ partner Aurigene exercised its exclusive option to in-license XL114 (formerly AUR104) under their July 2019 collaboration, option and license agreement. Consequently, Exelixis assumed responsibility for all subsequent clinical development, manufacturing and commercialization of the compound, which inhibits the CARD11-BCL10-MALT1 signaling pathway that promotes lymphocyte survival and proliferation. Following the FDA’s recent acceptance of Exelixis’ IND, the company plans to initiate a phase I study of XL114 as a monotherapy in patients with non-Hodgkin’s lymphoma.
2021 Guidance Updated
Revenues are now projected at $1,300-$1,350 million (previous projection: $1,300-$1,400 million) while product revenues are estimated in the range of $1,050-$1,100 million (previous projection: $1,050-$1,150 million).
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -58.73% due to these changes.
VGM Scores
At this time, Exelixis has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second 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 broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Exelixis has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.