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AVEO (AVEO) Up 25.3% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for AVEO Pharmaceuticals (AVEO - Free Report) . Shares have added about 25.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is AVEO 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 drivers.

AVEO Q2 Loss In Line, Revenues Miss

AVEO reported second-quarter 2018 adjusted loss of 6 cents per share, matching the Zacks Consensus Estimate. However, the loss was narrower than the year-ago adjusted loss of 8 cents.

AVEO’s top line comprises collaboration and licensing revenues as well as partnership royalties. Total revenues during the second quarter were approximately $0.4 million, up 23.4% from the year-ago figure, primarily on slightly higher royalty from Fotivda sales. However, revenues significantly lagged the Zacks Consensus Estimate of $1.35 million.

Quarterly Highlights

Research & development expenses decreased 29% to about $4.9 million. However, general and administrative expenses escalated 22.8% year over year to $2.8 million.

Cash Guidance

AVEO expects that its present cash resources of $18.1 million will allow the company to fund its planned operations through the first quarter of 2019.

 

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month.

VGM Scores

At this time, AVEO has a poor Growth Score of F, however its Momentum Score 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 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.

Outlook

AVEO has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.




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