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Axsome (AXSM) Up 27.3% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Axsome Therapeutics (AXSM - Free Report) . Shares have added about 27.3% in that time frame, outperforming the S&P 500.

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

Axsome's Q3 Earnings Beat Estimates, Revenues Nil

Axsome incurred a loss of 90 cents per share for fourth-quarter 2021, narrower than the Zacks Consensus Estimate of a loss of 99 cents but wider than the year-ago loss of 78 cents.

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

Quarter in Detail

Research and development expenses were $13.8 million for the quarter, down 20.7% from the year-ago period owing to the completion of a few clinical studies.

General and administrative expenses were $18.8 million, up 81.7% year over year. The significant increase was due to higher pre-commercialization activities related to the potential launch of AXS-05 and AXS-07.

As of Dec 31, 2021, Axsome had cash worth $86.5 million compared with $114.6 million on Sep 30, 2021.

Full-Year Results

For 2021, Axsome incurred a loss of $3.47 per share compared with the year-ago loss of $2.77.

2022 Guidance

Management believes that its cash balance as of December-end and term-loan facility will be enough to fund operations into 2024.

Axsome expects an increase in operating expenses on account of pipeline development and commercialization activities.

 

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

VGM Scores

Currently, Axsome has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Following the exact same course, 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 indicates a downward shift. Notably, Axsome has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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