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AVEO (AVEO) Up 20.7% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for AVEO Pharmaceuticals (AVEO - Free Report) . Shares have added about 20.7% in that time frame, outperforming the S&P 500.

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

AVEO Pharmaceuticals' Q2 Earnings Beat Estimates, Revenues Miss

AVEO incurred a loss of 42 cents per share in second-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 51 cents but wider than the year-ago quarter’s loss of 20 cents.

The company’s top line comprises collaboration and licensing revenues plus partnership royalties. Total revenues in the reported quarter were $0.75 million compared with $0.7 million in second-quarter 2019. However, revenues missed the Zacks Consensus Estimate of $1 million.

Operating Expenses

Research & development expenses soared 69.2% year over year to $4.4 million. Meanwhile, general and administrative expenses increased 23.2% year over year to $3.7 million.

Cash Position

ement believes that its cash balance along with anticipated partnership payments and royalty revenues from Fotivda sAVEO had $79.5 million worth of adjusted cash, cash equivalents and marketable securities as of Jun 30, 2020. Managale by EUSA will help fund its planned operations through 2022.

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 41.46% due to these changes.

VGM Scores

Currently, AVEO has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, 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 F. 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. It comes with little surprise AVEO has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.


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