A month has gone by since the last earnings report for Clovis Oncology, Inc. (CLVS - Free Report) . Shares have added about 11.5% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is CLVS 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.
Clovis Q1 Loss Wider Than Expected, Revenues Beat
Clovis incurred an adjusted loss of $1.54 per share in the first quarter of 2018, which was wider than the year-ago loss of $1.33 per share as well as the Zacks Consensus Estimate of a loss of $1.34.
Net revenues, entirely from Rubraca, were approximately $18.5 million in the quarter, up 10.1% sequentially. Revenues beat the Zacks Consensus Estimate of $17.5 million. The company had recorded total revenues of $7 million entirely from Rubraca sales in the year-ago quarter.
Importantly, the company registered 1700 new patients on Rubraca therapy since its approval. Approximately, 300 new patients were registered in the first quarter.
Quarter in Detail
During the first quarter, research & development expenses increased 34.2% year over year to $43.5 million primarily due to increased expenses for clinical studies on Rubraca. However, selling, general and administrative (SG&A) expenses escalated 34.4% year over year to $39.3 million, reflecting increased activities to support commercialization of Rubraca.
Cash used in operating activities in the quarter was $100.6 million, higher than $80.4 million in the year-ago quarter, mainly due to higher product supply costs.
Clovis ended the quarter with $463.8 million of cash equivalents and available-for-sale securities supported by the proceeds raised through share offerings made in January and June last year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been two revisions higher for the current quarter compared to one lower.
At this time, CLVS has a poor Growth Score of F. Its Momentum is doing a bit better with a D. The stock was also 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 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 upward for the stock and the magnitude of these revisions looks promising. Notably, CLVS has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.