A month has gone by since the last earnings report for AVEO Pharmaceuticals (AVEO - Free Report) . Shares have added about 71.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is AVEO 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 catalysts.
AVEO Q4 Earnings Beat, Revenues Lag
AVEO incurred fourth-quarter 2018 loss of 3 cents per share, narrower than the Zacks Consensus Estimate of a loss of 6 cents and also the year-ago loss of 8 cents.
AVEO’s top line comprises collaboration and licensing revenues plus partnership royalties. Total revenues in the reported quarter were approximately $1.5 million compared with $0.08 million reported in fourth-quarter 2017. Moreover, revenues missed the Zacks Consensus Estimate of $2.5 million.
Research & development expenses were down 8.8% year over year to $5.2 million. However, general and administrative expenses increased 8.3% year over year to $2.6 million.
AVEO expects that its present cash resources of $24.4 million along with $7.5 million raised from the sales under its agreement with SVB Leerink this February will allow the company to fund its planned operations through the first quarter of 2019.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 29.17% due to these changes.
Currently, AVEO has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. 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.
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise AVEO has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.