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Inovio (INO) Down 15.5% Since Earnings Report: Can It Rebound?

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It has been more than a month since the last earnings report for Inovio Pharmaceuticals, Inc. (INO - Free Report) . Shares have lost about 15.5% in that time frame, underperforming the market.

Will the recent negative trend continue leading up to the stock's next earnings release, or is it 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 catalysts.

Inovio Q3 Loss Wider Than Expected, Revenues Miss

Inovio Pharmaceuticals reported loss of 40 cents in the third quarter of 2017, wider than both the Zacks Consensus Estimate of a loss of 23 cents and the year-ago loss of 28 cents.

Inovio reported revenues of $2.6 million in the third quarter, significantly missing the Zacks Consensus Estimate of $14 million. Also, the top line substantially declined 79.2% from the year-ago period. This downside in revenues can mainly be attributable to lower grants received from Defense Advanced Research Projects Agency (DARPA) for development of Ebola vaccine, which is nearing completion.

During the quarter, revenues under grants and miscellaneous revenues dropped substantially to $1.5 million from $9.4 million a year ago.

Research and development expenses decreased 5.5% to $25.5 million owing to less expenses incurred, related to DARPA Ebola program.

General and administrative expenses rose 8.6% to $6.3 million, primarily due to an increase in employee headcount.

How Have Estimates Been Moving Since Then?

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

VGM Scores

At this time, Inovio stock has a poor Growth Score of F, a grade with the same score on the momentum front.  The stock was also allocated a grade of F on the value side, putting it in the fifth 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.

Our style scores indicate investors will probably be better served looking elsewhere.

Outlook

The stock has a Zacks Rank #4 (Sell). We are expecting a below average return from the stock in the next few months.


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