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Why Is Agios Pharmaceuticals (AGIO) Up 13.2% Since Last Earnings Report?

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A month has gone by since the last earnings report for Agios Pharmaceuticals (AGIO - Free Report) . Shares have added about 13.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Agios Pharmaceuticals 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 catalysts.

Agios Q4 Earnings Beat, Tibsovo Sales Up

Agios incurred fourth-quarter 2018 loss of $1.58 per share, narrower than the Zacks Consensus Estimate of a loss of $1.65 and also the year-ago loss of $1.81.

Total revenues in the reported quarter were $30 million, higher than the Zacks Consensus Estimate of $21 million as well as the year-ago top-line figure of $10 million.

The year-over-year rise in Agios’ revenues can be attributed to sales registered by Tibsovo (following its FDA approval in July 2018.

Research & development expenses were up 21.5% year over year to $93.8 million, largely due to the clinical trial activity for mitapivat in and start up activities for the thalassemia study and the investigational new drug (IND) application for AG-636, the DHODH inhibitor, and the cost associated with Agios’ ongoing research for discovery platform programs.

General and administrative expenses escalated 40.5% year over year to $31.9 million on higher investments to support the commercial launch of Tibsovo.

Agios ended the fourth quarter with cash, cash equivalents and marketable securities of $805.4 million, lower than the sequential quarter’s tally of $878.4 million. The company expects this cash balance and revenues recognized from Tibsovo to effectively fund its current operating plans for at least through 2020.

Agios’ new chief executive officer (CEO) Dr. Jacqualyn Fouse took over the reins of responsibility from its former CEO Dr. David Schenkein on Feb 1, 2019.

How Have Estimates Been Moving Since Then?

Fresh estimates followed a downward path over the past two months. The consensus estimate has shifted -6.05% due to these changes.

VGM Scores

At this time, Agios Pharmaceuticals has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. 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

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


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