It has been about a month since the last earnings report for Apellis Pharmaceuticals, Inc. (APLS). Shares have lost about 7.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Apellis Pharmaceuticals, Inc. 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 catalysts.
Apellis’ Q4 Earnings Rise Y/Y, Pegcetacoplan in Focus
Apellis delivered earnings of 93 cents per share in the fourth quarter of 2020 against the year-ago quarter’s loss of $1.77. The Zacks Consensus Estimate was pegged at a loss of 48 cents per share.
With no approved drug in its portfolio, the company does not generate revenues from the sale of products. However, in the fourth quarter, Apellis recorded licensing revenues of $250 million owing to the upfront proceeds from the Sobi transaction. In the year-ago quarter, the company did not record any revenue. Top line beat the Zacks Consensus Estimate of $185 million.
Quarter in Detail
Research and development (R&D) expenses were $75.4 million in the fourth quarter of 2020 compared with $78.5 million for the same period in 2019.
General and administrative expenses were $44.5 million in the fourth quarter of 2020 compared with $27.5 million reported in the year-ago quarter.
Apellis ended the fourth quarter of 2020 with cash, cash equivalents and marketable securities of $877.6 million, higher than $728.2 million at the end of the third quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted -14.05% due to these changes.
VGM Scores
Currently, Apellis Pharmaceuticals, Inc. has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, 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 C. 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 indicates a downward shift. Notably, Apellis Pharmaceuticals, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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