It has been about a month since the last earnings report for Allogene Therapeutics (ALLO Quick QuoteALLO - Free Report) . Shares have lost about 13.9% 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 the most recent earnings report in order to get a better handle on the important catalysts.

Q1 Earnings in Line With Estimates, Sales Lag

Allogene registered a loss of 38 cents per share in first-quarter 2024, in line with the Zacks Consensus Estimate. In the year-ago quarter, the company reported a loss of 69 cents.

ALLO recorded revenues of $0.02 million during the quarter, missing the Zacks Consensus Estimate of $0.04 million. Revenues were down 27% year over year.

Quarter in Detail

Research & development (R&D) expenses were $52.3 million, down 35% from the year-ago quarter’s level.

General and administrative (G&A) expenses declined 9% year over year to $17.3 million.

Allogene had $397.3 million of cash, cash equivalents and investments as of Mar 31, 2024, compared with $448.7 million as of Dec 31, 2023.

2024 Guidance

Allogene provided an update to its prior guidance. It now anticipates incurring operating expenses to be around $300 million (previously $280 million), including estimated non-cash stock-based compensation expenses of nearly $60 million.

Cash burn for 2024 is expected to be nearly $200 million, an increase of $10 million to the company’s prior guidance due to the timing impact of its revised milestone obligations to Servier.

How Have Estimates Been Moving Since Then?

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

The consensus estimate has shifted 5.52% 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 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 broadly 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, Halozyme Therapeutics (HALO Quick QuoteHALO - Free Report) , a stock from the same industry, has gained 13.9%. The company reported its results for the quarter ended March 2024 more than a month ago.

Halozyme Therapeutics reported revenues of $195.88 million in the last reported quarter, representing a year-over-year change of +20.8%. EPS of $0.79 for the same period compares with $0.47 a year ago.

For the current quarter, Halozyme Therapeutics is expected to post earnings of $0.80 per share, indicating a change of +8.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +8.2% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Halozyme Therapeutics. Also, the stock has a VGM Score of A.