A month has gone by since the last earnings report for ImmunoGen, Inc. . Shares have added about 21.2% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it 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 drivers.
ImmunoGen Posts Narrower-than-Expected Loss in Q1
ImmunoGen reported a loss of $0.20 per share in the first quarter of 2017, narrower than both the Zacks Consensus Estimate of $0.36 and the year-ago loss of $0.37.
ImmunoGen does not have any approved product in its portfolio. Thecompany earns revenues through royalties, license and milestone payments, as well as research and development (R&D) support fees paid by its partners.
Revenues increased 45.7% year over year to $28.7 million and beat the Zacks Consensus Estimate of $18 million in the reported quarter. The increase in revenues was mainly driven by substantially higher license and milestone fees of $18.7 million, up 87% year over year. This included $6 million in partner milestone fees and $12.7 million license fees from the collaboration agreement with CytomX.
R&D expenses decreased 8.3% from the year-ago level to $33.1 million. This was primarily due decreased costs associated with manufacturing clinical materials on behalf of the company’s partners. Selling, general and administrative (SG&A) expenses declined 27.7% to $8.1 million due decreased personnel expenses in the first quarter of 2017.
ImmunoGen’s cash and cash equivalents at the end of Mar 2017 stood at $126.6 million compared with $160.0 million as of Dec 2016.
2017 Outlook
The company continues to expect revenues in the range of $70–$75 million in 2017, which includes $28 million of expected upfront and milestone fees from partners.
Operating expenses are projected in the range of $175–$180 million for 2017.
Cash and marketable securities are expected between $35 million and $40 million as of Dec 31, 2017.
The company believes its current cash and expected cash can fund operations through the second quarter of 2018.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter. In the past month, the consensus estimate has shifted downward by 5.2% due to these changes.
VGM Scores
At this time, ImmunoGen's stock has a great Growth Score of 'A', though it is lagging a bit on the momentum front with a 'B'. However, the stock was allocated a grade of 'F' on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for growth investors than momentum investors.
Outlook
While estimates have been broadly trending downward for the stock, the magnitude of these revisions has been net zero. 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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ImmunoGen (IMGN) Up 21.2% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for ImmunoGen, Inc. . Shares have added about 21.2% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it 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 drivers.
ImmunoGen Posts Narrower-than-Expected Loss in Q1
ImmunoGen reported a loss of $0.20 per share in the first quarter of 2017, narrower than both the Zacks Consensus Estimate of $0.36 and the year-ago loss of $0.37.
ImmunoGen does not have any approved product in its portfolio. Thecompany earns revenues through royalties, license and milestone payments, as well as research and development (R&D) support fees paid by its partners.
Revenues increased 45.7% year over year to $28.7 million and beat the Zacks Consensus Estimate of $18 million in the reported quarter. The increase in revenues was mainly driven by substantially higher license and milestone fees of $18.7 million, up 87% year over year. This included $6 million in partner milestone fees and $12.7 million license fees from the collaboration agreement with CytomX.
R&D expenses decreased 8.3% from the year-ago level to $33.1 million. This was primarily due decreased costs associated with manufacturing clinical materials on behalf of the company’s partners. Selling, general and administrative (SG&A) expenses declined 27.7% to $8.1 million due decreased personnel expenses in the first quarter of 2017.
ImmunoGen’s cash and cash equivalents at the end of Mar 2017 stood at $126.6 million compared with $160.0 million as of Dec 2016.
2017 Outlook
The company continues to expect revenues in the range of $70–$75 million in 2017, which includes $28 million of expected upfront and milestone fees from partners.
Operating expenses are projected in the range of $175–$180 million for 2017.
Cash and marketable securities are expected between $35 million and $40 million as of Dec 31, 2017.
The company believes its current cash and expected cash can fund operations through the second quarter of 2018.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter. In the past month, the consensus estimate has shifted downward by 5.2% due to these changes.
ImmunoGen, Inc. Price and Consensus
ImmunoGen, Inc. Price and Consensus | ImmunoGen, Inc. Quote
VGM Scores
At this time, ImmunoGen's stock has a great Growth Score of 'A', though it is lagging a bit on the momentum front with a 'B'. However, the stock was allocated a grade of 'F' on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for growth investors than momentum investors.
Outlook
While estimates have been broadly trending downward for the stock, the magnitude of these revisions has been net zero. Notably, the stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.