A month has gone by since the last earnings report for Celldex Therapeutics, Inc. (CLDX - Free Report) . Shares have lost about 9.2% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is CLDX due for a breakout? 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.
Celldex Q1 Loss Wider Than Expected, Revenues Beat
Celldex incurred first-quarter 2018 loss (excluding goodwill impairment charges) of 19 cents per share, wider than the Zacks Consensus Estimate of a loss of 17 cents but narrower than the year-ago loss of 28 cents. Lower costs and higher revenues led to the year-over-year improvement.
Total revenues in the quarter soared 165% year over year to $4.1 million, beating the Zacks Consensus Estimate of $2.03 million. The manufacturing service agreement with the International AIDS Vaccine Initiative and Frontier Biotechnologies drove the top line.
Research and development expenses were down 15.1% year over year to $21.9 million during the quarter. General and administrative expenses were $5.6 million, down 22.2% year over year.
As of Mar 31, 2017, Celldex had cash, cash equivalents and marketable securities of $123.2 million compared with $139.4 million as of Mar 31, 2018. The biotech company’s weakened cash position was due to higher operating expense, partially offset by net proceeds raised from sales of its common stock this month under a contract with Cantor.
Celldex expects that its cash position as of the end of December plus $6.1 million in net proceeds generated from the sale of its common stock in the last two months and the anticipated proceeds from any future sales of common stock under the agreement with Cantor will be adequate to fund the working capital requirements as well as planned operations through 2020.
Discontinued Clinical Studies
Apart from glembatumumab vedotin, Celldex announced in its earnings release the discontinuation of development of its early phase ADC candidate, CDX-014 and antibody fusion protein candidate, CDX-1401. The company took this decision for better allocation of its resources.
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. In the past month, the consensus estimate has shifted by 31.4% due to these changes.
Celldex Therapeutics, Inc. Price and Consensus
At this time, CLDX has an average Growth Score of C, though it is lagging a bit on the momentum front with a D. Charting a somewhat similar path, the stock was 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.
The company's stock is suitable solely for growth based on our styles scores.
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. Notably, CLDX has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.