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Allogene Therapeutics (ALLO) Down 10.9% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Allogene Therapeutics (ALLO - Free Report) . Shares have lost about 10.9% in that time frame, underperforming the S&P 500.

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

Allogene Q2 Earnings and Sales Beat Estimates

Allogene incurred a loss of 52 cents per share in second-quarter 2022, narrower than the Zacks Consensus Estimate of a loss of 61 cents and the year-ago quarter’s loss of 53 cents.

ALLO recorded revenues of $0.09 million during the quarter, which beat the Zacks Consensus Estimate of $0.08 million. In the year-ago quarter, Allogene recorded $0.04 million of revenues.

Quarter in Detail

Research & development (R&D) expenses were $57.2 million, up 9.3% from the year-ago quarter’s level.

General and administrative (G&A) expenses increased 3.9% year over year to $19.5 million.

Allogene had $686.1 million of cash, cash equivalents and investments as of Jun 30, 2022, compared with $733.1 million as of Mar 31, 2022.

2022 Guidance

Though Allogene anticipates an increase in operating expenses in the second half of the year compared with the first half, it expects operating expenses for the full year to be at the lower end of the previously-provided guidance of $360 million-$390 million.

Cash burn for the full year is expected to be around $250 million.

How Have Estimates Been Moving Since Then?

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

The consensus estimate has shifted 7.87% due to these changes.

VGM Scores

Currently, Allogene Therapeutics has a subpar Growth Score of D, 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 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, Allogene Therapeutics 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

Allogene Therapeutics is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Deciphera Pharmaceuticals, Inc. (DCPH - Free Report) , a stock from the same industry, has gained 1.7%. The company reported its results for the quarter ended June 2022 more than a month ago.

Deciphera Pharmaceuticals, Inc. reported revenues of $32.49 million in the last reported quarter, representing a year-over-year change of +37.8%. EPS of -$0.60 for the same period compares with -$1.21 a year ago.

For the current quarter, Deciphera Pharmaceuticals, Inc. is expected to post a loss of $0.57 per share, indicating a change of +58.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.4% over the last 30 days.

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


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