A month has gone by since the last earnings report for Intrexon Corporation . Shares have lost about 16.3% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it 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.
Intrexon Q4 Loss Wider than Expected, Revenues Lag
Intrexon reported adjusted loss per share of $0.26 in the fourth quarter of 2016. Adjusted loss excluded shares issued as compensation for services bad debt expense and equity in net loss of affiliates. In fact, this loss was wider than the Zacks Consensus Estimate loss of $0.23.
Total revenue came in at $46 million in the quarter, up 11% year over year. Reported revenues were, however, below the Zacks Consensus Estimate of $52 million.
Quarter in Detail
Intrexon’s revenues primarily consist of collaboration and licensing revenues as well as product and service revenues.
Collaboration and licensing revenues increased 31.2% to $27.7 million.
While product revenues came in at $7.7 million, down 16.7% from the year-ago period, service revenues came in at $10.3 million, down 4.2% year over year.
Intrexon follows a business model under which it commercializes its technologies through exclusive channel collaborations (ECC), licensing agreements and joint ventures with collaborators that have market and product development expertise as well as sales and marketing capabilities to bring new and improved products and processes to market. Such agreements provide the company with funds in the form of technology access fees along with milestones and other payments.
Intrexon is also developing several candidates in partnership with other companies.
During 2016, the FDA granted Fast Track designation to Fibrocel Science, Inc. for FCX-007 for the treatment of recessive dystrophic epidermolysis bullosa as well as to Oragenics, Inc. for ActoBiotics AG013 for the treatment of oral mucositis. Also, the FDA granted Orphan Drug designation to Agilis Biotherapeutics' AGIL-FA for the treatment of Friedreich's ataxia as well as to Fibrocell’s FCX-013 for the treatment of linear scleroderma. Moving ahead, we expect investors’ focus to remain on further developmental updates by the company.
2016 Results
For 2016, adjusted loss came in at $0.76 per share.
Revenues came in at $190.9 million, which is an increase of 10% year over year.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions. In the past month, the consensus estimate shifted downward by 13.3%.
VGM Scores
Currently, Intrexon's stock has a poor Growth Score of 'F', a grade with the same score on the momentum front. Following the exact same course, the stock was allocated also 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.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Intrexon (XON) Down 16.3% Since Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Intrexon Corporation . Shares have lost about 16.3% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it 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.
Intrexon Q4 Loss Wider than Expected, Revenues Lag
Intrexon reported adjusted loss per share of $0.26 in the fourth quarter of 2016. Adjusted loss excluded shares issued as compensation for services bad debt expense and equity in net loss of affiliates. In fact, this loss was wider than the Zacks Consensus Estimate loss of $0.23.
Total revenue came in at $46 million in the quarter, up 11% year over year. Reported revenues were, however, below the Zacks Consensus Estimate of $52 million.
Quarter in Detail
Intrexon’s revenues primarily consist of collaboration and licensing revenues as well as product and service revenues.
Collaboration and licensing revenues increased 31.2% to $27.7 million.
While product revenues came in at $7.7 million, down 16.7% from the year-ago period, service revenues came in at $10.3 million, down 4.2% year over year.
Intrexon follows a business model under which it commercializes its technologies through exclusive channel collaborations (ECC), licensing agreements and joint ventures with collaborators that have market and product development expertise as well as sales and marketing capabilities to bring new and improved products and processes to market. Such agreements provide the company with funds in the form of technology access fees along with milestones and other payments.
Intrexon is also developing several candidates in partnership with other companies.
During 2016, the FDA granted Fast Track designation to Fibrocel Science, Inc. for FCX-007 for the treatment of recessive dystrophic epidermolysis bullosa as well as to Oragenics, Inc. for ActoBiotics AG013 for the treatment of oral mucositis. Also, the FDA granted Orphan Drug designation to Agilis Biotherapeutics' AGIL-FA for the treatment of Friedreich's ataxia as well as to Fibrocell’s FCX-013 for the treatment of linear scleroderma. Moving ahead, we expect investors’ focus to remain on further developmental updates by the company.
2016 Results
For 2016, adjusted loss came in at $0.76 per share.
Revenues came in at $190.9 million, which is an increase of 10% year over year.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions. In the past month, the consensus estimate shifted downward by 13.3%.
Intrexon Corporation Price and Consensus
Intrexon Corporation Price and Consensus | Intrexon Corporation Quote
VGM Scores
Currently, Intrexon's stock has a poor Growth Score of 'F', a grade with the same score on the momentum front. Following the exact same course, the stock was allocated also 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.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.