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Why Is Achillion (ACHN) Up 4.7% Since Last Earnings Report?

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A month has gone by since the last earnings report for Achillion Pharmaceuticals (ACHN - Free Report) . Shares have added about 4.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Achillion due for a pullback? 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.

Achillion Reports Narrower-Than-Expected Q3 Loss

Achillion reported a loss of 12 cents per share in the third quarter of 2018, narrower than the year-ago level as well as the Zacks Consensus Estimate of 14 cents.

The company generated no revenues in the reported quarter.

Research and development (R&D) expenses decreased nearly 15.9% from the year-ago period to $13.1 million. The fall was due to decreased stock-based compensation, lower personnel costs, as well as manufacturing and formulation expenses for ACH-5228, along with discovery costs related intravitreal factor D inhibitors. This was partially offset by increased costs related to clinical studies of ACH-4471 and ACH-5228, along with preclinical costs of ACH-5548.

General and administrative (G&A) expenses declined 14.3% year over year to $4.2 million due to lower stock-based compensation related to the transition of its chief executive officer along with reduced consulting fees.

 

How Have Estimates Been Moving Since Then?

Fresh estimates followed a downward path over the past two months.

VGM Scores

Currently, Achillion has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, 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.

Outlook

Achillion has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.




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