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Celldex (CLDX) Down 3.9% Since Last Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for Celldex Therapeutics (CLDX - Free Report) . Shares have lost about 3.9% 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 the most recent earnings report in order to get a better handle on the important catalysts.

Celldex Q3 Loss Narrower Than Expected, Revenues Miss

Celldex incurred a loss of 75 cents per share in third-quarter 2019, narrower than the Zacks Consensus Estimate of a loss of 84 cents but wider than the year-ago loss of 66 cents.

Total revenues in the quarter declined 42% year over year to $0.5 million and missed the Zacks Consensus Estimate of $0.94 million. The year-over-year decline was due to a decrease in revenues from the collaboration agreement with Bristol-Myers and contract with the International AIDS Vaccine Initiative.

Costs Decline

Research and development expenses were down 6.7% year over year to $11.1 million in the quarter mainly due to lower personnel costs, and a decline in clinical study and contract manufacturing-related expenses. General and administrative expenses were $3.4 million, down 8.1% year over year, mainly attributable to lower personnel and marketing expenses.

As of Sep 30, 2019, Celldex had cash, cash equivalents and marketable securities of $72.9 million compared with $81.3 million as of Jun 30, 2019.

2019 Outlook

The company believes that its cash position as of the end of September plus anticipated net proceeds from future sales of its common stock under the agreement with Cantor will be adequate to fund working capital requirements as well as planned operations through 2020.

How Have Estimates Been Moving Since Then?

Fresh estimates followed an upward path over the past two months.

VGM Scores

At this time, Celldex has a poor Growth Score of F, however its Momentum Score 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 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.

Outlook

Celldex has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.


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