A month has gone by since the last earnings report for Agios Pharmaceuticals (AGIO). Shares have lost about 1.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Agios Pharmaceuticals due for a breakout? 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.
Agios’ Q4 Loss in Line, Revenues Surpass Estimates
Agios reported fourth-quarter 2020 loss of $1.41 per share, which was in line with the Zacks Consensus Estimate. The reported loss was narrower than the year-ago loss of $1.60.
Total revenues of $44 million in the reported quarter surpassed the Zacks Consensus Estimate of $36 million. Moreover, the top line grew 24.3% year over year owing to increased sales of Tibsovo (
Quarter in Detail
Tibsovo generated sales of $39.1 million in the fourth quarter, reflecting a sequential increase of 23.3% on higher demand for the drug. On the fourth-quarter conference call, management stated that sales performance of Tibsovo in the reported quarter was driven by growth in new scripts and refills, and favorable gross to net proceeds.
Royalty revenues earned from Celgene, now part of Bristol-Myers, were $2.9 million on Idhifa (enasidenib) net sales in the reported quarter.
Collaboration revenues were $2 million in the quarter compared with $12.9 million in the year-ago quarter.
Research & development expenses declined 9.9% year over year to $95.7 million due to ramped-down activity of clinical studies for Tibsovo.
Selling general and administrative expenses increased 14.4% year over year to $39.8 million on account of higher personnel costs and professional fees related to the Servier transaction.
Agios ended the fourth quarter with cash, cash equivalents and marketable securities of $670.5 million, lower than $722.4 million at the end of the third quarter. The company expects this cash balance and revenues recognized from Tibsovo and royalties to effectively fund its current operational plans at least through the end of 2022.
Full-Year Results
For 2020, Agios generated revenues of $203.2 million, reflecting an increase of 72.3% year over year. Tibsovo net product sales were $121.1 million in 2020, reflecting a significant increase year over year.
For the same period, the company reported loss of $4.74 per share compared with the year-ago loss of $6.86 per share.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month. The consensus estimate has shifted 7.57% due to these changes.
VGM Scores
Currently, Agios Pharmaceuticals has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. 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 D. 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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