It has been about a month since the last earnings report for Acceleron Pharma . Shares have lost about 6.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Acceleron 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.
Acceleron Q1 Loss Wider Than Expected, Revenues Miss
Acceleron reported a loss of 95 cents in the first quarter of 2020, wider than the Zacks Consensus Estimate of a loss of 84 cents and a loss of 74 cents in the year-ago quarter. The wider year-over-year loss was primarily due to increased operating expenses.
The company reported collaboration revenues of $4.3 million in the reported quarter, increasing from $2.8 million in the year-ago quarter but missing the Zacks Consensus Estimate of $6 million.
Total revenues reported in the quarter include $2.8 million of cost share revenues and $1.5 million of royalty revenues from net sales of Reblozyl (luspatercept-aamt) in the United States.
In November 2019, the FDA approved the company’s first drug, Reblozyl, for the treatment of anemia in adult patients with beta-thalassemia, who require regular red blood cell or RBC transfusions.
Research and development costs increased to $37.6 million from $32.8 million in the year-ago quarter. Selling, general and administrative costs too increased to $18.2 million from $10.8 million in the year-ago quarter.
Cash, cash equivalents and investments as of Mar 31, 2020, were $415.6 million, down from $453.8 million at December-end. Based on its current operating plans and projections, Acceleron believes that current cash, cash equivalents and investments will be sufficient to fund projected operating requirements for some time as it expects to receive significant royalty revenues from Reblozyl sales.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -26.2% due to these changes.
VGM Scores
Currently, Acceleron has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, 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
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Acceleron has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Acceleron (XLRN) Down 6.2% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Acceleron Pharma . Shares have lost about 6.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Acceleron 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.
Acceleron Q1 Loss Wider Than Expected, Revenues Miss
Acceleron reported a loss of 95 cents in the first quarter of 2020, wider than the Zacks Consensus Estimate of a loss of 84 cents and a loss of 74 cents in the year-ago quarter. The wider year-over-year loss was primarily due to increased operating expenses.
The company reported collaboration revenues of $4.3 million in the reported quarter, increasing from $2.8 million in the year-ago quarter but missing the Zacks Consensus Estimate of $6 million.
Total revenues reported in the quarter include $2.8 million of cost share revenues and $1.5 million of royalty revenues from net sales of Reblozyl (luspatercept-aamt) in the United States.
In November 2019, the FDA approved the company’s first drug, Reblozyl, for the treatment of anemia in adult patients with beta-thalassemia, who require regular red blood cell or RBC transfusions.
Research and development costs increased to $37.6 million from $32.8 million in the year-ago quarter. Selling, general and administrative costs too increased to $18.2 million from $10.8 million in the year-ago quarter.
Cash, cash equivalents and investments as of Mar 31, 2020, were $415.6 million, down from $453.8 million at December-end. Based on its current operating plans and projections, Acceleron believes that current cash, cash equivalents and investments will be sufficient to fund projected operating requirements for some time as it expects to receive significant royalty revenues from Reblozyl sales.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -26.2% due to these changes.
VGM Scores
Currently, Acceleron has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, 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
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Acceleron has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.