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Why Is Denali Therapeutics Inc. (DNLI) Up 11.9% Since Last Earnings Report?
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A month has gone by since the last earnings report for Denali Therapeutics Inc. (DNLI - Free Report) . Shares have added about 11.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Denali Therapeutics Inc. 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.
Denali Misses on Q1 Earnings, Focuses on Pipeline
Denali reported a first-quarter 2023 loss of 80 cents per share, wider than the Zacks Consensus Estimate and our model estimates of a loss of 71 cents and 78 cents, respectively. The company incurred a loss of 53 cents per share in the year-ago quarter.
Collaboration revenues totaled $35.1 million in the reported quarter, which surpassed the Zacks Consensus Estimate of $31 million. The figure beat our model estimates of $25 million but went down from $42.1 million recorded in the prior-year period.
Quarter in Detail
Research and development expenses amounted to $128.8 million, up 49.6% year over year.
General and administrative expenses increased to $27.1 million compared with $22.5 million in the year-ago quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
Currently, Denali Therapeutics Inc. has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of F on the value side, putting it in the lowest 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 trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Denali Therapeutics 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
Denali Therapeutics Inc. belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Ultragenyx (RARE - Free Report) , has gained 9.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.
Ultragenyx reported revenues of $100.5 million in the last reported quarter, representing a year-over-year change of +25.7%. EPS of -$2.33 for the same period compares with -$2.19 a year ago.
For the current quarter, Ultragenyx is expected to post a loss of $2.08 per share, indicating a change of +8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Ultragenyx. Also, the stock has a VGM Score of F.
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Why Is Denali Therapeutics Inc. (DNLI) Up 11.9% Since Last Earnings Report?
A month has gone by since the last earnings report for Denali Therapeutics Inc. (DNLI - Free Report) . Shares have added about 11.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Denali Therapeutics Inc. 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.
Denali Misses on Q1 Earnings, Focuses on Pipeline
Denali reported a first-quarter 2023 loss of 80 cents per share, wider than the Zacks Consensus Estimate and our model estimates of a loss of 71 cents and 78 cents, respectively. The company incurred a loss of 53 cents per share in the year-ago quarter.
Collaboration revenues totaled $35.1 million in the reported quarter, which surpassed the Zacks Consensus Estimate of $31 million. The figure beat our model estimates of $25 million but went down from $42.1 million recorded in the prior-year period.
Quarter in Detail
Research and development expenses amounted to $128.8 million, up 49.6% year over year.
General and administrative expenses increased to $27.1 million compared with $22.5 million in the year-ago quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
Currently, Denali Therapeutics Inc. has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of F on the value side, putting it in the lowest 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 trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Denali Therapeutics 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
Denali Therapeutics Inc. belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Ultragenyx (RARE - Free Report) , has gained 9.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.
Ultragenyx reported revenues of $100.5 million in the last reported quarter, representing a year-over-year change of +25.7%. EPS of -$2.33 for the same period compares with -$2.19 a year ago.
For the current quarter, Ultragenyx is expected to post a loss of $2.08 per share, indicating a change of +8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Ultragenyx. Also, the stock has a VGM Score of F.