A month has gone by since the last earnings report for Agios Pharmaceuticals, Inc. (AGIO - Free Report) . Shares have added about 2.6% in the past month, 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 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.
Agios Q1 Loss Narrower than Expected, Idhifa in Focus
Agios Pharmaceuticals posted first-quarter 2017 loss of $1.56 per share, narrower than the Zacks Consensus Estimate of a loss of $1.79 but wider than the year-ago loss of $0.61.
Agios does not have any approved product in its portfolio yet. In fact, the company’s top line mainly comprises collaboration revenues and milestone payments.
Total collaboration revenue in the first quarter amounted to $10.5 million, which beat the Zacks Consensus Estimate of $10 million. However, revenues were significantly lower than $31.3 million generated in the year-ago period. The decrease in revenues is mainly attributable to recognition of a $25 million milestone payment from Celgene in the year-ago quarter for initiation of a phase III IDENTIFY study with Idhifa/enasidenib which was absent this quarter.
Research & development expenses were up almost 42.5 % year over year to $62.7 million. The increase was largely driven by higher investments associated with the advancement of the company's lead investigational medicines into late-stage studies.
General and administrative expenses increased 37% year over year to $14.8 million due to a higher headcount and other professional costs to support the expansion of operations.
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.
VGM Scores
At this time, Agios's stock has a poor Growth Score of 'F', however its Momentum is doing a lot better with a 'C'. However, the stock was allocated a grade of 'F' on the value side, putting it in the lowest 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 based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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A month has gone by since the last earnings report for Agios Pharmaceuticals, Inc. (AGIO - Free Report) . Shares have added about 2.6% in the past month, 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 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.
Agios Q1 Loss Narrower than Expected, Idhifa in Focus
Agios Pharmaceuticals posted first-quarter 2017 loss of $1.56 per share, narrower than the Zacks Consensus Estimate of a loss of $1.79 but wider than the year-ago loss of $0.61.
Agios does not have any approved product in its portfolio yet. In fact, the company’s top line mainly comprises collaboration revenues and milestone payments.
Total collaboration revenue in the first quarter amounted to $10.5 million, which beat the Zacks Consensus Estimate of $10 million. However, revenues were significantly lower than $31.3 million generated in the year-ago period. The decrease in revenues is mainly attributable to recognition of a $25 million milestone payment from Celgene in the year-ago quarter for initiation of a phase III IDENTIFY study with Idhifa/enasidenib which was absent this quarter.
Research & development expenses were up almost 42.5 % year over year to $62.7 million. The increase was largely driven by higher investments associated with the advancement of the company's lead investigational medicines into late-stage studies.
General and administrative expenses increased 37% year over year to $14.8 million due to a higher headcount and other professional costs to support the expansion of operations.
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.
VGM Scores
At this time, Agios's stock has a poor Growth Score of 'F', however its Momentum is doing a lot better with a 'C'. However, the stock was allocated a grade of 'F' on the value side, putting it in the lowest 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 based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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