Back to top

Image: Bigstock

Why Is Agios Pharmaceuticals (AGIO) Down 24.6% Since Last Earnings Report?

Read MoreHide Full Article

It has been about a month since the last earnings report for Agios Pharmaceuticals (AGIO - Free Report) . Shares have lost about 24.6% in that time frame, underperforming the S&P 500.

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

Agios Reports Narrower-Than-Expected Q3 Loss

Agios reported a loss of $1.48 per share from continued operations for the third quarter, narrower than the Zacks Consensus Estimate of a loss of $1.61 but wider than the year-ago quarter’s loss of $1.15.

Following the sale of the oncology portfolio to Servier in March, the company recorded zero revenues for the third quarter. The Zacks Consensus Estimate for the metric was $2.3 million. In the year-ago quarter, the company recorded $34.7 million in total revenues.

Quarter in Detail

Research & development expenses increased 23.2% year over year to $64 million due to a rise in cost related to the planned initiation of late-stage studies of mitapivat for SCD and thalassemia.

Selling, general and administrative expenses were down 4.2% year over year to $27.2 million.

At the end of September 2021, cash, cash equivalents and marketable securities were $1.4 billion compared with $1.7 billion at June 2021-end.

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 7.12% due to these changes.

VGM Scores

At this time, Agios Pharmaceuticals 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 F on the value side, putting it in the bottom 20% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Agios Pharmaceuticals, Inc. (AGIO) - free report >>

Published in