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Celldex (CLDX) Down 5.7% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Celldex Therapeutics (CLDX - Free Report) . Shares have lost about 5.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Celldex 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.

Celldex Q4 Loss Narrower Than Expected, Sales Beat

Celldex incurred adjusted loss of 95 cents per share in fourth-quarter 2018, narrower than the Zacks Consensus Estimate of a loss of $1.20 and the year-ago loss of $2.55. The loss was adjusted for a gain of $1.65 million on fair value re-measurement of contingent consideration. However, including the fair value re-measurement item, the reported loss was 81 cents compared with a loss of 42 cents in the year-ago quarter.

Total revenues in the quarter declined 49% year over year to $1.8 million. The year-over-year decline was due to decrease in contract revenues from the International AIDS Vaccine Initiative and Frontier Biotechnologies. Revenues, however, surpassed the Zacks Consensus Estimate of $1 million.

Quarterly Details

Research and development expenses declined 109.4% year over year to $11.2 million during the quarter, mainly owing to lower personnel costs, and decline in clinical study and contract manufacturing related expenses. General and administrative expenses were $4.3 million, down 26.5% year over year, mainly attributable to lower personnel and commercial planning expenses.

As of Dec 31, 2018, Celldex had cash, cash equivalents and marketable securities of $94 million compared with $139.4 million as of Dec 31, 2017. The biotech company’s cash position was weakened by higher operating expenses, including costs related to discontinuation of glembatumumab vedotin development, partially offset by net proceeds from the sale of its common stock under a contract with Cantor.

2018 Results

The company reported adjusted loss of $6.81 per share in 2018, wider than the Zacks Consensus Estimate of $5.85 and the year-ago loss of $9.4.

Revenues were $9.5 million, down 25.2% year over year. However, the figure beat the Zacks Consensus Estimate of $9.2 million.

2019 Outlook

Celldex believes that its cash position, as of December 2018-end, plus anticipated proceeds from the future sale of its common stock per the agreement with Cantor will be enough to meet working capital requirements and fund planned operations through 2020.

How Have Estimates Been Moving Since Then?

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


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