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Why Is Agenus (AGEN) Down 16.8% Since the Last Earnings Report?
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It has been about a month since the last earnings report for Agenus Inc. (AGEN - Free Report) . Shares have lost about 16.8% 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.
Agenus Reports Narrower-than-Expected Loss in Q4
Agenus reported fourth-quarter 2016 loss of $0.30 per share (including non-cash expenses), narrower than the Zacks Consensus Estimate of a loss of $0.33 but wider than the year-ago loss of $0.18.
Moreover, revenues declined 27% year over year to $5.5 million, slightly below the Zacks Consensus Estimate of $6 million.
Quarterly Highlights
Agenus' fourth-quarter research and development (R&D) expenses were up 44.8% to $25.9 million. Likewise, general and administrative expenses increased 2.5% to $8.7 million. The rise in net loss year over year was mainly due to the expansion and growth of the research activities at the company.
Pipeline Update
Agenus is progressing well with the candidates in its pipeline. Currently, the company is evaluating AGEN1884 in a phase I study. The company is also evaluatingINCAGN01876 in a phase I study for the treatment of solid tumors. The company has initiated phase I study for OX40 agonist INCAGN1949 in collaboration with Incyte.
GlaxoSmithKline filed for regulatory approval of Shingrix vaccine which contains Agenus' QS-21 Stimulon.
The company plans to initiate studies on anti-PD-1 antagonist AGEN2034 in the first half of 2017. Agenus also expects to begin combination studies on AGEN2034 and AGEN1884 in the second half of the year. The company expects to start phase I trial for AutoSynVax in the year’s first half. It also expects to start cervical cancer trial for PD-1 monotherapy in the second half.
Earlier in 2016, Agenus amended its collaboration with Incyte Corporation, resulting in $80 million of cash to the former which included $60 million from an equity investment at $6 per share and $20 million in accelerated clinical development milestones for the GITR and OX40 programs.
The company also entered into a research collaboration with UCB to advance the development of multi-specific therapeutic antibodies.
2016 Update
For full-year 2016, loss was $1.46 per share compared with loss of $1.13 in 2015. The figure was narrower than the Zacks Consensus Estimate of loss of $1.49.
In 2016, revenues came in at $22.6 million, down 9% year over year. Revenues also missed the Zacks Consensus Estimate of $23.01 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one downward revision for the current quarter.
At this time, Agenus' stock has a subpar Growth Score of 'D', however its Momentum 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 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.
The stock is suitable solely for momentum based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Notably, the stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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Why Is Agenus (AGEN) Down 16.8% Since the Last Earnings Report?
It has been about a month since the last earnings report for Agenus Inc. (AGEN - Free Report) . Shares have lost about 16.8% 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.
Agenus Reports Narrower-than-Expected Loss in Q4
Agenus reported fourth-quarter 2016 loss of $0.30 per share (including non-cash expenses), narrower than the Zacks Consensus Estimate of a loss of $0.33 but wider than the year-ago loss of $0.18.
Moreover, revenues declined 27% year over year to $5.5 million, slightly below the Zacks Consensus Estimate of $6 million.
Quarterly Highlights
Agenus' fourth-quarter research and development (R&D) expenses were up 44.8% to $25.9 million. Likewise, general and administrative expenses increased 2.5% to $8.7 million. The rise in net loss year over year was mainly due to the expansion and growth of the research activities at the company.
Pipeline Update
Agenus is progressing well with the candidates in its pipeline. Currently, the company is evaluating AGEN1884 in a phase I study. The company is also evaluatingINCAGN01876 in a phase I study for the treatment of solid tumors. The company has initiated phase I study for OX40 agonist INCAGN1949 in collaboration with Incyte.
GlaxoSmithKline filed for regulatory approval of Shingrix vaccine which contains Agenus' QS-21 Stimulon.
The company plans to initiate studies on anti-PD-1 antagonist AGEN2034 in the first half of 2017. Agenus also expects to begin combination studies on AGEN2034 and AGEN1884 in the second half of the year. The company expects to start phase I trial for AutoSynVax in the year’s first half. It also expects to start cervical cancer trial for PD-1 monotherapy in the second half.
Earlier in 2016, Agenus amended its collaboration with Incyte Corporation, resulting in $80 million of cash to the former which included $60 million from an equity investment at $6 per share and $20 million in accelerated clinical development milestones for the GITR and OX40 programs.
The company also entered into a research collaboration with UCB to advance the development of multi-specific therapeutic antibodies.
2016 Update
For full-year 2016, loss was $1.46 per share compared with loss of $1.13 in 2015. The figure was narrower than the Zacks Consensus Estimate of loss of $1.49.
In 2016, revenues came in at $22.6 million, down 9% year over year. Revenues also missed the Zacks Consensus Estimate of $23.01 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one downward revision for the current quarter.
Agenus Inc. Price and Consensus
Agenus Inc. Price and Consensus | Agenus Inc. Quote
VGM Scores
At this time, Agenus' stock has a subpar Growth Score of 'D', however its Momentum 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 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.
The stock is suitable solely for momentum based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Notably, the stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.