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Merrimack (MACK) Down 7.8% Since Earnings Report: Can It Rebound?
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It has been more than a month since the last earnings report for Merrimack Pharmaceuticals, Inc. (MACK - Free Report) . Shares have lost about 7.8% in the past month, 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.
Merrimack’s Q3 Loss Narrower than Expected
Merrimack reported a loss of 40 cents per share in the third quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of $1.88. The company had reported a loss of $2.06 in the year-ago quarter.
Merrimack sold Onivyde and a generic version of Doxil to Ipsen in the second quarter for $1.025 billion. Merrimack did not record any revenues in the quarter as there was no marketed product. The Zacks Consensus Estimate for revenues was $18 million.
Quarter in Detail
In the quarter, research and development expenses were down 51.8% year over year to $13.6 million due to a shift in the company’s focus from Onivyde to its pipeline.
General and administrative expenses were down 47.8% year over year to $3.4 million during the quarter due to costs related to transition after asset sale including personnel expenses.
The company settled a litigation with participating convertible noteholders related to extinguishment of debt after asset sale. Merrimack will pay 90 cents per $1.00 of 4.50% convertible senior notes due in 2020. The company has also tendered an offer at the same rate for the remaining convertible notes.
Outlook
Merrimack expects its current financial resources along with anticipated milestone payments from Shire to be sufficient to fund its operations at the estimated spending rates through 2019.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There has been one revision higher for the current quarter.
Merrimack Pharmaceuticals, Inc. Price and Consensus
At this time, the 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 lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions also looks promising. Interestingly, 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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Merrimack (MACK) Down 7.8% Since Earnings Report: Can It Rebound?
It has been more than a month since the last earnings report for Merrimack Pharmaceuticals, Inc. (MACK - Free Report) . Shares have lost about 7.8% in the past month, 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.
Merrimack’s Q3 Loss Narrower than Expected
Merrimack reported a loss of 40 cents per share in the third quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of $1.88. The company had reported a loss of $2.06 in the year-ago quarter.
Merrimack sold Onivyde and a generic version of Doxil to Ipsen in the second quarter for $1.025 billion. Merrimack did not record any revenues in the quarter as there was no marketed product. The Zacks Consensus Estimate for revenues was $18 million.
Quarter in Detail
In the quarter, research and development expenses were down 51.8% year over year to $13.6 million due to a shift in the company’s focus from Onivyde to its pipeline.
General and administrative expenses were down 47.8% year over year to $3.4 million during the quarter due to costs related to transition after asset sale including personnel expenses.
The company settled a litigation with participating convertible noteholders related to extinguishment of debt after asset sale. Merrimack will pay 90 cents per $1.00 of 4.50% convertible senior notes due in 2020. The company has also tendered an offer at the same rate for the remaining convertible notes.
Outlook
Merrimack expects its current financial resources along with anticipated milestone payments from Shire to be sufficient to fund its operations at the estimated spending rates through 2019.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There has been one revision higher for the current quarter.
Merrimack Pharmaceuticals, Inc. Price and Consensus
Merrimack Pharmaceuticals, Inc. Price and Consensus | Merrimack Pharmaceuticals, Inc. Quote
VGM Scores
At this time, the 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 lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions also looks promising. Interestingly, the stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.