A month has gone by since the last earnings report for Iovance Biotherapeutics (IOVA - Free Report) . Shares have lost about 1.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Iovance Biotherapeutics 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.
Iovance Incurs Narrower-Than-Expected Q2 Loss
Iovance incurred loss of 47 cents per share in second-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 52 cents. However, it was wider than the year-ago quarter’s loss of 38 cents.
The company did not record any revenues during the quarter.
Quarter in Detail
Research & development (R&D) expenses were $49.3 million, 25.4% higher than the year-ago quarter, primarily due to a rise in clinical activities.
General and administrative (G&A) expenses increased 32.1% to $14.4 million due to an increase in related personnel costs.
The company had $777.4 million in cash, cash equivalents, short-term investments and restricted cash as of Jun 30, 2020 compared with $251.2 million as of Mar 31, 2020. The significant increase in cash resources was due to net proceeds of $567.4 million from a common stock public offering completed in June.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 6.81% due to these changes.
At this time, Iovance Biotherapeutics has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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.
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Iovance Biotherapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.