It has been about a month since the last earnings report for Apellis Pharmaceuticals, Inc. (APLS Quick QuoteAPLS - Free Report) . Shares have lost about 7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Apellis Pharmaceuticals, Inc. 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 drivers.

Apellis' Q4 Earnings Top, Empaveli Sales Boost Revenues

Apellis Pharmaceuticals reported a loss per share of $1.50 for fourth-quarter 2022, narrower than the Zacks Consensus Estimate of a loss of $1.65. The loss was also narrower than our estimates of a loss of $1.82 per share. The company had reported a loss of $1.61 per share in the year-ago quarter.

Total revenues were $22.7 million, surpassing the Zacks Consensus Estimate of $21 million. Total revenues were also higher than our model estimates of $21.2 million in the reported quarter. In the year-ago quarter, the company reported revenues of $60.3 million. The drastic difference is due to the $51.1 million milestone and additional licensing revenues received from the Swedish Orphan Biovitrum (Sobi) collaboration in the year-ago quarter.

Revenues in the reported quarter included product sales of the marketed drug Empaveli (pegcetacoplan), which stood at $19.7 million, and licensing and other revenues of $3 million under the Sobi collaboration.

Quarter in Detail

Research and development expenses were $99.4 million in the fourth quarter of 2022, down 8.13% from $108.2 million in the year-ago quarter.

General and administrative expenses were $84.4 million in the fourth quarter of 2022, up 103.4% from $41.5 million in the year-ago quarter. This increase was driven by higher employee-related costs and an increase in professional and consulting fees.

As of Dec 31, 2022, Apellis had cash, cash equivalents and marketable securities worth $551.8 million compared with $708.6 million as of Sep 30, 2022.

Full-Year 2022 Results

The company recorded a loss per share of $6.15 for full-year 2022, narrower than the previous year’s loss per share of $8.84.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

VGM Scores

Currently, Apellis Pharmaceuticals, Inc. has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, 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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Apellis Pharmaceuticals, Inc. 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

Apellis Pharmaceuticals, Inc. belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Deciphera Pharmaceuticals, Inc. , has gained 1.4% over the past month. More than a month has passed since the company reported results for the quarter ended December 2022.

Deciphera Pharmaceuticals, Inc. reported revenues of $36.35 million in the last reported quarter, representing a year-over-year change of +50.2%. EPS of -$0.60 for the same period compares with -$1.51 a year ago.

Deciphera Pharmaceuticals, Inc. is expected to post a loss of $0.59 per share for the current quarter, representing a year-over-year change of +26.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.

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.