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Axsome (AXSM) Down 10.4% Since Last Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for Axsome Therapeutics (AXSM - Free Report) . Shares have lost about 10.4% in that time frame, underperforming the S&P 500.

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

Axsome's Earnings Beat in Q2, Pipeline Progresses

Axsome reported second-quarter 2020 loss per share of 49 cents, narrower than the Zacks Consensus Estimate of a loss of 54 cents but wider than the year-ago quarter’s loss of 41 cents.

Axsome currently does not have any approved product in its portfolio. As a result, the company is yet to generate any revenues from the same.

Quarter in Detail

Research and development (R&D) expenses were $10.5 million in the quarter, down 4.5% from the year-ago period owing to completion of several studies on the pipeline candidates.

General and administrative (G&A) expenses were $7.2 million, significantly up year over year due to increased stock compensation expenses and commercial costs.

As of Jun 30 2020, Axsome had cash worth $190.7 million compared with $197.3 million as of Mar 31, 2020. Management believes that its cash balance as of June-end will be enough to fund its anticipated operations for at least a couple of years.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates revision.

VGM Scores

Currently, Axsome has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

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


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