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Agios Pharmaceuticals (AGIO) Up 6.2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Agios Pharmaceuticals (AGIO - Free Report) . Shares have added about 6.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Agios Pharmaceuticals due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Agios' Q3 Loss Wider Than Expected, Revenues Miss
Agios reported third-quarter 2020 loss of $1.43 per share, wider than the Zacks Consensus Estimate of a loss of $1.40 but narrower than the year-ago loss of $1.81.
Total revenues of $34.7 million in the reported quarter missed the Zacks Consensus Estimate of $36 million. However, the top line grew 33.4% year over year owing to increased sales of Tibsovo.
Tibsovo generated sales of $31.7 million in the third quarter, reflecting a sequential increase of 15% on higher demand for the drug. On the third-quarter conference call, management stated that it continues to see a steady rise in physician preference for Tibsovo, both with respect to the newly-diagnosed as well as the relapsed and refractory AML setting.
The company raised the lower end of 2020 guidance for Tibsovo sales to the $113-115 million from the earlier projection of $105-115 million.
Quarter in Detail
Royalty revenues earned from Celgene, now part of Bristol-Myers were $0.7 million on Idhifa’s net sales.
Collaboration revenues were $2.3 million in the quarter compared with $5.9 million in the year-ago quarter.
Research & development expenses declined 11.9% year over year to $89.6 million due to ramped-down activity of clinical studies for Tibsovo.
Selling general and administrative expenses increased 5.4% year over year to $34.8 million on account of higher personnel costs.
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 8.03% due to these changes.
VGM Scores
At this time, Agios Pharmaceuticals has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. 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 F. 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 looks promising. Notably, Agios Pharmaceuticals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Agios Pharmaceuticals (AGIO) Up 6.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Agios Pharmaceuticals (AGIO - Free Report) . Shares have added about 6.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Agios Pharmaceuticals due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Agios' Q3 Loss Wider Than Expected, Revenues Miss
Agios reported third-quarter 2020 loss of $1.43 per share, wider than the Zacks Consensus Estimate of a loss of $1.40 but narrower than the year-ago loss of $1.81.
Total revenues of $34.7 million in the reported quarter missed the Zacks Consensus Estimate of $36 million. However, the top line grew 33.4% year over year owing to increased sales of Tibsovo.
Tibsovo generated sales of $31.7 million in the third quarter, reflecting a sequential increase of 15% on higher demand for the drug. On the third-quarter conference call, management stated that it continues to see a steady rise in physician preference for Tibsovo, both with respect to the newly-diagnosed as well as the relapsed and refractory AML setting.
The company raised the lower end of 2020 guidance for Tibsovo sales to the $113-115 million from the earlier projection of $105-115 million.
Quarter in Detail
Royalty revenues earned from Celgene, now part of Bristol-Myers were $0.7 million on Idhifa’s net sales.
Collaboration revenues were $2.3 million in the quarter compared with $5.9 million in the year-ago quarter.
Research & development expenses declined 11.9% year over year to $89.6 million due to ramped-down activity of clinical studies for Tibsovo.
Selling general and administrative expenses increased 5.4% year over year to $34.8 million on account of higher personnel costs.
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 8.03% due to these changes.
VGM Scores
At this time, Agios Pharmaceuticals has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. 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 F. 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 looks promising. Notably, Agios Pharmaceuticals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.