It has been about a month since the last earnings report for ImmunoGen, Inc. (IMGN - Free Report) . Shares have added about 4.2% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is IMGN 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 Q1 Loss Wider Than Expected, Revenues Beat
ImmunoGen incurred adjusted loss of 30 cents per share in first-quarter 2018, wider than the Zacks Consensus Estimate of a loss of 27 cents. The quarterly loss was also wider than the year-ago loss of 20 cents due to higher operating costs.
Revenues came in at $19.8 million, which surpassed the Zacks Consensus Estimate of $15 million in the quarter. However, the top-line figure decreased 30.5% from the year-ago figure of $28.5 million. ImmunoGen recorded upfront fees of $10.9 million and $0.5 million from Takeda and Debiopharm, respectively, compared with $6 million in milestone payments in the year-ago quarter. It received $12.7 million in non-cash fees in the year ago period related to license agreement with CytomX.
Research & development (R&D) expenses increased 36.2% from the year-ago level to $44.8 million, mainly owing to accelerated completion time of enrollment in phase III FORWARD I study. Selling, general and administrative (SG&A) expenses were up 23.5% to $10 million in the first quarter of 2018. This upside can be attributed to higher third-party service fees and stock-based compensation.
At the end of March 2018, ImmunoGen’s cash and cash equivalents totaled $218.4 million compared with $267.1 million as of December 2017. The company expects its current cash and the estimated cash to fund its operations through the fourth quarter of 2019.
2018 Outlook Updated
The company maintained its revenues guidance the range of $60-$65 million for 2018. The Zacks Consensus Estimate for the metric is pegged at $62.5 million.
The company continues to expect cash and cash equivalents in the range of $115 million to $120 million.
However, ImmunoGen has increased its operating expenses guidance for 2018. Operating expenses are now expected in the range of $200-$205 million in 2018 compared with $185-$190 expected previously.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There has been one revision higher for the current quarter compared to three lower.
ImmunoGen, Inc. Price and Consensus
At this time, IMGN has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, 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.
Our style scores indicate investors will probably be better served looking elsewhere.
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. Notably, IMGN has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.