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Why Is Aduro Biotech (ADRO) Down 10.7% Since Last Earnings Report?

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It has been about a month since the last earnings report for Aduro Biotech . Shares have lost about 10.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Aduro Biotech 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.

Aduro Q4 Earnings andRevenues Fall Shy of Estimates

Aduro incurred fourth-quarter 2018 loss of 33 cents per share, wider than the Zacks Consensus Estimate of a loss of 23 cents but narrower than the year-ago loss of 34 cents.

Revenues came in at $2.8 million, down 26.3% year over year due to changes in revenue recognition methodology. The top line also missed the Zacks Consensus Estimate of $5.9 million.

Research and development expenses declined 23.1% in the reported quarter to $17.6 million owing to lower expenses related to the company’s LADD programs.

General and administrative expenses were $9 million, up 2.3% year over year, primarily on higher stock-based compensation expense and consulting costs.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month. The consensus estimate has shifted 20.82% due to these changes.

VGM Scores

At this time, Aduro Biotech has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Following the exact same course, 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.


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

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