A month has gone by since the last earnings report for Geron (GERN - Free Report) . Shares have lost about 13% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Geron due for a breakout? 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.
Geron’s Q3 Earnings Beat, Revenues Miss
Geron reported a loss of 3 cents per share for the third quarter of 2018, narrower than the Zacks Consensus Estimates of a loss of 5 cents and the year-ago quarter loss of 4 cents.
Quarterly revenues increased 1.2% from the year-ago quarter to $0.17 million, which missed the Zacks Consensus Estimate of $0.22 million. Revenues comprised royalty and license fee revenues received under various non-imetelstat license agreements.
Research and development (R&D) expenses increased 2.7% to $2.7 million. The rise was due to higher costs for clinical development of imetelstat. General and administrative (G&A) expenses fell 10.6% to $4.3 million.
The company ended the quarter with $184.8 million in cash and investments compared with $181.4 million at the end of the second quarter.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
At this time, Geron 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 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.
Geron has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.