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Why Is ImmunoGen (IMGN) Down 0.5% Since Last Earnings Report?

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It has been about a month since the last earnings report for ImmunoGen (IMGN - Free Report) . Shares have lost about 0.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is ImmunoGen due for a breakout? 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.

ImmunoGen Beats Q3 Earnings & Revenue Estimates

ImmunoGen reported loss of 13 cents per share for the third quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of 20 cents and the year-ago loss of 15 cents.

Revenues came in at $18.2 million, which also beat the Zacks Consensus Estimate of $15 million. Revenues were up 36.8% year over year, mainly driven by higher non-cash royalty revenues.

Quarter in Details

For the third quarter, Immunogen reported license and milestone fees of $97,000 compared with $79,000 in the year-ago period.

Third-quarter revenues included $18.1 million in non-cash royalty revenues, up 37% year over year.

During the quarter, research and development expenses increased 17.5% from the year-ago level to $24.7 million due to restructuring initiatives, partially offset by higher expenses related to clinical studies. General and administrative expenses increased 11.1% to $10.2 million in the third quarter of 2020.

ImmunoGen’s cash and cash equivalents decreased to $188.2 million at the end of September 2020 compared with $219.5 million at the end of June 2020. In October, the company generated net proceeds of $54 million from sales of its common stock, which will boost cash resources.

Cash Guidance Raised

ImmunoGen raised its guidance for cash and cash equivalents to be between $245 million and $250 million at 2020 end compared with $170 million and $175 million expected previously. However, the company maintained its guidance for other metrics. The company expects revenues for the full year to be between $60 million and $65 million. It expects operating expense to be in the range of $165-$170 million. The company expects cash and cash equivalents to be between $245 million and $250 million at 2020 end compared with $170 million and $175 million expected previously.

It expects cash resources along with net proceeds from sale of common stock as well as anticipated future cash receipts from partners to be enough to fund its operations through the second half of 2022.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 76.93% due to these changes.

VGM Scores

Currently, ImmunoGen 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 F on the value side, putting it in the fifth quintile 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 trending upward for the stock, and the magnitude of these revisions looks promising. Notably, ImmunoGen has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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