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Why Is Inovio (INO) Up 21.3% Since the Last Earnings Report?

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It has been about a month since the last earnings report for Inovio Pharmaceuticals, Inc. (INO - Free Report) . Shares have added about 21.3% 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 of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Inovio First Quarter Loss Narrower Than Expected, Revenues Beat

Inovio Pharmaceuticals reported loss of $0.31 for the first quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of $0.34. However, the reported figure was significantly wider than the year-ago loss of $0.11.

Quarter in Details

Inovio reported revenues of $10.4 million in the first quarter, which comfortably surpassed the Zacks Consensus Estimate of $4 million. Moreover, revenues grew 28.4% from the year-ago period. The top-line improvement is mainly attributable to revenues recognized from the termination payment received from Roche Holding during the first quarter. In 2016, Roche discontinued its collaboration with Inovio for the development of INO-1800, a hepatitis B DNA immunotherapy.

During the quarter, revenues under collaborative research and development arrangements surged 138% to $4.3 million from $1.8 million a year ago.

Research and development expenses increased 34.6% to $24.5 million due to higher investment in all product development programs.

General and administrative expenses increased 44.4% to $7.8 million, primarily due to an increase in non-cash stock based compensation costs.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.

Inovio Pharmaceuticals, Inc. Price and Consensus

VGM Scores

At this time, Inovio's stock has a poor Growth Score of 'F', however its momentum 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 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.

The company's stock is suitable solely for momentum investors based on our style scores.

Outlook

Notably, the stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.


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