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Why Is Iovance Biotherapeutics (IOVA) Up 6.7% Since Last Earnings Report?

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It has been about a month since the last earnings report for Iovance Biotherapeutics (IOVA - Free Report) . Shares have added about 6.7% in that time frame, outperforming the S&P 500.

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

Iovance Incurs Narrower-Than-Expected Q3 Loss

Iovance incurred loss of 40 cents per share in third-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 46 cents. However, the bottom line was flat year over year.

The company did not record any revenues during the quarter.

Quarter in Detail

Research & development (R&D) expenses were $43.1 million, 3.6% higher than the year-ago quarter, primarily due to an increase in related personnel costs, partially offset by a decline in manufacturing costs.

General and administrative (G&A) expenses increased 59% to $15.9 million due to an increase in related personnel costs.

The company had $719.7 million in cash, cash equivalents, short-term investments and restricted cash as of Sep 30, 2020 compared with $777.4 million as of Jun 30, 2020.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 7.02% due to these changes.

VGM Scores

Currently, Iovance Biotherapeutics has a subpar Growth Score of D, 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 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.


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