Back to top

Image: Bigstock

Why Is Inovio (INO) Up 6.6% Since Its Last Earnings Report?

Read MoreHide Full Article

A month has gone by since the last earnings report for Inovio Pharmaceuticals, Inc. (INO - Free Report) . Shares have added about 6.6% in that time frame.

Will the recent positive trend continue leading up to its next earnings release, or is INO due for a pullback? 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.

Inovio’s Q4 Loss Narrower Than Expected, Revenues Beat

Inovio reported a loss of 24 cents in the fourth quarter of 2017, narrower than both the Zacks Consensus Estimate of a loss of 32 cents and the year-ago loss of 35 cents.

Inovio reported revenues of $8.8 million in the fourth quarter, slightly beating the Zacks Consensus Estimate of $8 million. The top line also increased 3.5% from the year-ago period. Note that, fourth-quarter revenues include a receipt of $7 million milestone payment in December 2017 from AstraZeneca’s subsidiary, MedImmune. The milestone payment was related to the initiation of a phase II study on Inovio’s MEDI0457, in combination with the latter’s PD-L1 checkpoint inhibitor, Imfinzi (durvalumab), for head and neck squamous cell cancer.

Moreover, the company also received additional $1.2 million revenues under its prior collaboration with Roche for the development of INO-180. However, upside in revenues was partially offset by lower grants received from Defense Advanced Research Projects Agency (DARPA) for the development of Ebola vaccine, which is nearing completion.

Research and development expenses increased 2.9% to $24.6 million, owing to higher headcount to support developmental activities related to the company’s pipeline.

General and administrative expenses rose 14.3% to $8 million, primarily due to an increase in employee headcount and non-cash stock-based compensation.

2017 Results

Full-year sales stood at $42.2 million, beating the Zacks Consensus Estimate of $40.4 million. Moreover, the top line also increased 19.2% compared with the year-ago figure of $35.4 million.

The full-year loss of $1.09 per share was narrower than the Zacks Consensus Estimate of $1.17. However, the bottom line is wider than the year-ago loss of $1.01.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates. There has been one revision higher for the current quarter.

VGM Scores

At this time, INO has a subpar Growth Score of D, however its Momentum is doing a lot better with an A. The stock was allocated a grade of F on the value side, putting it in the bottom 20% 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 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 this revision looks promising. Notably, INO has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Inovio Pharmaceuticals, Inc. (INO) - free report >>

Published in