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Why Is Immunomedics (IMMU) Down 6.7% Since Last Earnings Report?

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It has been about a month since the last earnings report for Immunomedics (IMMU - Free Report) . Shares have lost about 6.7% in that time frame, underperforming the S&P 500.

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

Immunomedics Q1 Earnings Beat, Trodelvy in Focus

Immunomedics incurred a loss of 30 cents per share in second-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 34 cents and 40 cents in the year-ago quarter.

The company reported net product revenue of $20.1 million in the second quarter, against no product revenue for the year ago quarter. Revenue, however missed the Zacks Consensus estimate of $25 million.

Research and development expenses decreased to $42.6 million for the second quarter from $53 million in the year ago quarter, primarily due to a decrease in manufacturing and quality costs.

Pipeline Update

During the quarter, the company released results from the confirmatory phase III ASCENT study which met primary endpoint of progression-free survival and key secondary endpoints of overall survival and objective response rate 

Supplemental biologics license application seeking full approval of Trodelvy anticipated to be submitted to FDA in fourth quarter 2020  

The company’s ongoing clinical collaboration with Roche to evaluate Tecentriq (atezolizumab) in combination with Trodelvy in patients with mTNBC has been expanded to include mUC and mNSCLC using Roche’s MORPHEUS platform.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 32.29% due to these changes.

VGM Scores

Currently, Immunomedics has a nice Growth Score of B, a grade with the same score on the momentum front. 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Immunomedics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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