It has been about a month since the last earnings report for Allogene Therapeutics (ALLO). Shares have lost about 9.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Allogene Therapeutics 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.
Allogene’s Q2 Loss Widens Y/Y
Allogene incurred loss of 53 cents per share in second-quarter 2020, wider than the year-ago quarter’s loss of 41 cents. The Zacks Consensus Estimate was pegged at a loss of 55 cents.
With no marketed products, the company did not record any revenues during the quarter.
Quarter in Detail
Research & development (R&D) expenses were $47.3 million, up 48.9% from the year-ago quarter. The significant increase was presumably due to higher clinical activities.
General and administrative (G&A) expenses increased 11.8% year over year to $15.9 million.
The company had $1.1 billion in cash, cash equivalents and investments as of Mar 31, 2020 compared with $553 million as of Mar 31, 2020. The increase was led by a follow-on offering that raised $632.5 million in gross proceeds.
2020 Guidance Maintained
Allogene maintained its guidance for 2020. The company expects full-year loss to be in the range of $260-$280 million, including stock-based compensation expense of $70 million to $75 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 6.75% due to these changes.
VGM Scores
At this time, Allogene Therapeutics has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Allogene Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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