It has been about a month since the last earnings report for Aduro Biotech (ADRO). Shares have lost about 3.1% in that time frame, outperforming 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’s Earnings & Revenues Miss Estimates in Q4
Aduro incurred fourth-quarter 2019 loss of 24 cents per share, wider than the Zacks Consensus Estimate of a loss of 21 cents but narrower than the year-ago loss of 33 cents.
Revenues of $3.6 million were up 31.7% year over year, primarily owing to recognition of an upfront payment received in 2019 under the collaboration with Eli Lilly.However, sales missed the Zacks Consensus Estimate of $5 million.
Research and development expenses declined 14.2% in the reported quarter to $15.1 million due to lower stock-based compensation and headcount costs resulting from the strategic reset in January 2019.
General and administrative expenses were $9 million, flat year over year.
Aduro had $213.6 million worth of cash, cash equivalents and marketable securities as of Dec 31, 2019 compared with $235.4 million on Sep 30, 2019.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. The consensus estimate has shifted -23.11% due to these changes.
At this time, Aduro Biotech has a subpar Growth Score of D, 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 D. 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.