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Immunovant, Inc. (IMVT) Up 6.6% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for Immunovant, Inc. (IMVT - Free Report) . Shares have added about 6.6% in that time frame, outperforming the S&P 500.

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

Immunovant Reports Narrower-Than-Expected Loss in Q4

Immunovant reported a net loss of 29 cents per share in the fourth quarter of fiscal 2021, narrower than the Zacks Consensus Estimate of a loss of 33 cents and the year-ago loss of 38 cents.

Currently, the company does not have any approved product in its portfolio. As a result, it is yet to generate revenues.

Quarter in Detail

In the reported quarter, research and development (R&D) expenses were $18.6 million, up 30.9% from the year-ago quarter. The year-over-year increase was attributable to increase in contract manufacturing costs, driven by the expansion of the company’s clinical study programs for the treatment of autoimmune diseases.

General and administrative (G&A) expenses were $10.3 million in the reported quarter, up 63.4% on a year-over-year basis. The increase was primarily due to higher personnel costs and stock-based compensation expenses resulting from higher headcount.

As of Mar 31, 2021, the company had cash balance of approximately $400 million compared with $422 million as at Dec 31, 2020.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions. The consensus estimate has shifted 9.38% due to these changes.

VGM Scores

At this time, Immunovant, Inc. 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 D on the value side, putting it in the bottom 40% for this investment strategy.

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

Outlook

Immunovant, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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