A month has gone by since the last earnings report for Agios Pharmaceuticals (AGIO - Free Report) . Shares have lost about 4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Agios Pharmaceuticals 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.
Agios Q3 Earnings Beat, Records First Tibsovo Sales
Agios incurred third-quarter 2018 loss of $1.63 per share, narrower than the Zacks Consensus Estimate of a loss of $1.69 but wider than the year-ago loss of $1.59.
Total revenues in the reported quarter were $15.2 million, higher than the Zacks Consensus Estimate of $14 million as well as the year-ago top-line count of $11 million.
The year-over-year rise in Agios’ revenues can be attributed to sales registered by its first wholly owned precision medicine, Tibsovo, in the very first quarter following its FDA nod.
Research & development expenses were up 13.2% year over year to $82.5 million, largely due to the start-up cost for AG-348 pivotal pipeline program, the IND filing for AG-636 and the cost associated with Agios’ ongoing research for discovery platform programs.
General and administrative expenses escalated 78.2% year over year to $31.1 million on higher investments to support the commercial launch of Tibsovo.
Agios ended the third quarter with cash, cash equivalents and marketable securities of $878 million, lower than the sequential quarter’s tally of $937 million. The company expects this cash balance as well as revenues recognized from Tibsovo to effectively fund its current operating plans for at least through 2020.
How Have Estimates Been Moving Since Then?
Fresh estimates followed an upward path over the past two months.
At this time, Agios Pharmaceuticals 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 lowest 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.
Agios Pharmaceuticals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.