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Clovis (CLVS) Down 8.1% Since Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Clovis Oncology, Inc. (CLVS - Free Report) . Shares have lost about 8.1% 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 the most recent earnings report in order to get a better handle on the important catalysts.

Clovis Q2 Loss Wider than Expected, Rubraca Impresses

Clovis reported second-quarter 2017 loss of $1.29 per share, which was narrower than the year-ago loss of $2.07 per share. The reported loss was however wider than the Zacks Consensus Estimate of a loss of $1.27.

Net product revenues, entirely from Rubraca, were approximately $14.6 million in the quarter, up 108.6% sequentially. Revenues also beat the Zacks Consensus Estimate of $12.54 million. The company said that 750 new patients were registered in the quarter.

Quarter in Detail

During the reported quarter, research & development expenses decreased 51.1% year over year to $33.1 million, primarily due to decreased development activities related to Rubraca and rociletinib programs. General and administrative (G&A) expenses increased 276% year over year to $36.1 million, reflecting increased activities to support commercialization of Rubraca.

Cash used in operating activities in the quarter was $69.1 million, slightly more than $68 million in the year-ago quarter.

The company ended the quarter with $671.5 million of cash equivalents and available-for-sale securities supported by the proceeds raised through share offerings in January and June.

Update on Rubraca

In Jun 2017, the company announced promising progression-free survival (PFS) and safety results from the pivotal maintenance confirmatory study, ARIEL3.The study demonstrated that Rubraca had a meaningful impact in delaying disease recurrence in advanced ovarian cancer patients. Clovis intends to submit a supplemental new drug application (sNDA) for label expansion of Rubraca in second-line or later maintenance indication for advanced ovarian cancer by October this year. The company believes that the label expansion is expected to increase patient population by at least four times.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the past month as none of them issued any earnings estimate revisions.

Clovis Oncology, Inc. Price and Consensus

 

Clovis Oncology, Inc. Price and Consensus | Clovis Oncology, Inc. Quote

VGM Scores

At this time, Clovis's stock has a subpar Growth Score of D, though it is lagging a bit on the momentum front with an F. 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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