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Clovis (CLVS) Down 12.6% Since Last Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for Clovis Oncology . Shares have lost about 12.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Clovis 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 catalysts.

Clovis Q2 Loss Wider Than Expected, Revenues Miss

Clovis reported adjusted loss (excluding non-cash adjustments) was 43 cents per share, wider than the Zacks Consensus Estimate of a loss of 42 cents. In the year-ago quarter, the company posted an adjusted loss of 61 cents.

Net revenues — entirely from Rubraca — were down 13% year over year to $32.1 million, missing the Zacks Consensus Estimate of $37.8 million.

Quarter in Detail

Sales of Rubraca in the United States were $22.7 million, down 18.1% year over year. Ex-U.S. market sales were $9.4 million for the second quarter, up 3.3% year over year. Lower sales in the U.S. were due to COVID-19 impacts as fewer patients were treated for ovarian cancer in the second-line setting amid the pandemic. Overall, Rubraca sales also declined 6% quarter over quarter.

For the second quarter, research & development expenses decreased 20% year over year to $36.4 million, primarily owing to lower spending on Rubraca clinical studies.

Selling, general and administrative expenses dropped 1% year over year to $32.6 million.

Clovis ended the quarter with $94.6 million of cash equivalents and available-for-sale securities compared with $122.2 million on Mar 31, 2022.

CLVS also faces the risk of a severe cash crunch. The company announced the need to raise additional capital to support its operations beyond February 2023.

How Have Estimates Been Moving Since Then?

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

VGM Scores

At this time, Clovis has a great Growth Score of A, though it is lagging a lot 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 bottom 20% quintile 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

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Clovis has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Clovis is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Gilead Sciences (GILD - Free Report) , a stock from the same industry, has gained 2.2%. The company reported its results for the quarter ended June 2022 more than a month ago.

Gilead reported revenues of $6.26 billion in the last reported quarter, representing a year-over-year change of +0.7%. EPS of $1.58 for the same period compares with $1.87 a year ago.

For the current quarter, Gilead is expected to post earnings of $1.52 per share, indicating a change of -42.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.4% over the last 30 days.

Gilead has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.


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