A month has gone by since the last earnings report for ImmunoGen, Inc. . Shares have added about 47.2% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it 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.
ImmunoGen Posts Wider-than-Expected Loss; Sales Down Y/Y
ImmunoGen reported a loss of $0.39 per share (excluding restructuring charge) in the three month transition period ended Dec 31, marginally wider than both the Zacks Consensus Estimate and the year-ago loss of $0.38.
Revenues decreased 23.3% year over year to $13.8 million and missed the Zacks Consensus Estimate of $19 million in the quarter ended Dec 31, 2016.
R&D expenses decreased 11.8% from the year-ago level to $33.7 million. This was primarily due to lower third-party costs related to activities in the prior-year period. Selling, general and administrative (SG&A) expenses were up 6.3% to $8.5 million due to higher third-party service fees associated with the company's strategic review, partially offset by lower salaries and related expenses and lesser administrative expenses.
2016 Results (six months ended Dec 31)
ImmunoGen’s sales for the six months ended Dec 31 2016, increased 34.7% year over year to $21.5 million.
The company incurred a loss of $0.85 per share in the six months ended Dec 31 2016. The company had posted earnings of $0.77 per share a year ago.
2017 Outlook
The company expects revenues in the range of $70 million to $75 million, which includes $28 million of expected upfront and milestone fees from partners.
Operating expenses are projected in the range of $175 million and $180 million for 2017.
Cash and marketable securities are expected to be between $35 million and $40 million at Dec 31, 2017. The company expects its current cash and expected cash will enable the company to fund its operations into the second quarter of 2018.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There have been three revisions higher for the current quarter compared to two lower. In the past month, the consensus estimate has shifted by 5.7% due to these changes.
VGM Scores
At this time, ImmunoGen's stock has an average Growth Score of 'C', however its Momentum 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 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.
Our style scores indicate that the stock is more suitable for momentum investors than growth investors.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. Notably the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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ImmunoGen (IMGN) Up 47.2% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for ImmunoGen, Inc. . Shares have added about 47.2% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it 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.
ImmunoGen Posts Wider-than-Expected Loss; Sales Down Y/Y
ImmunoGen reported a loss of $0.39 per share (excluding restructuring charge) in the three month transition period ended Dec 31, marginally wider than both the Zacks Consensus Estimate and the year-ago loss of $0.38.
Revenues decreased 23.3% year over year to $13.8 million and missed the Zacks Consensus Estimate of $19 million in the quarter ended Dec 31, 2016.
R&D expenses decreased 11.8% from the year-ago level to $33.7 million. This was primarily due to lower third-party costs related to activities in the prior-year period. Selling, general and administrative (SG&A) expenses were up 6.3% to $8.5 million due to higher third-party service fees associated with the company's strategic review, partially offset by lower salaries and related expenses and lesser administrative expenses.
2016 Results (six months ended Dec 31)
ImmunoGen’s sales for the six months ended Dec 31 2016, increased 34.7% year over year to $21.5 million.
The company incurred a loss of $0.85 per share in the six months ended Dec 31 2016. The company had posted earnings of $0.77 per share a year ago.
2017 Outlook
The company expects revenues in the range of $70 million to $75 million, which includes $28 million of expected upfront and milestone fees from partners.
Operating expenses are projected in the range of $175 million and $180 million for 2017.
Cash and marketable securities are expected to be between $35 million and $40 million at Dec 31, 2017. The company expects its current cash and expected cash will enable the company to fund its operations into the second quarter of 2018.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There have been three revisions higher for the current quarter compared to two lower. In the past month, the consensus estimate has shifted by 5.7% due to these changes.
ImmunoGen, Inc. Price and Consensus
ImmunoGen, Inc. Price and Consensus | ImmunoGen, Inc. Quote
VGM Scores
At this time, ImmunoGen's stock has an average Growth Score of 'C', however its Momentum 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 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.
Our style scores indicate that the stock is more suitable for momentum investors than growth investors.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. Notably the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.