A month has gone by since the last earnings report for Clovis Oncology (CLVS). Shares have lost about 18.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Clovis 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 catalysts.
Clovis Q3 Loss Narrower Than Expected, Revenues Miss
Clovis reported a net loss of 39 cents per share for third-quarter 2022, narrower than the year-ago period’s loss of 56 cents and the Zacks Consensus Estimate of a loss of 42 cents.
Net revenues — entirely from Clovis’ only marketed drug PARP inhibitor Rubraca — were down 19.1% year over year to $30.7 million, missing the Zacks Consensus Estimate of $35 million
Quarter in Detail
Sales of Rubraca in the United States were $23 million, down 19.8% year over year. Ex-U.S. market sales were $7.6 million for the third quarter, compared with $9.2 million in the year-ago quarter.
Research and development expenses decreased 33.3% year over year to $30.8 million, primarily owing to lower spending on Rubraca clinical studies.
Selling, general and administrative expenses dropped 5.6% year over year to $30.4 million.
Clovis ended the quarter with $58.3 million of cash equivalents and available-for-sale securities compared with $94.6 million on Jun 30, 2022.
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 10.19% due to these changes.
VGM Scores
At this time, Clovis has a strong Growth Score of A, a grade with the same score on the momentum front. However, 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 A. If you aren’t focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Clovis has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Clovis is part of the Zacks Medical – Biomedical and Genetics industry. Over the past month, Alnylam Pharmaceuticals (ALNY), a stock from the same industry, has gained 12%. The company reported its results for the quarter ended September 2022 more than a month ago.
Alnylam reported revenues of $264.31 million in the last reported quarter, representing a year-over-year change of +40.9%. EPS of -$3.32 for the same period compares with -$1.72 a year ago.
For the current quarter, Alnylam is expected to post a loss of $2.18 per share, indicating a change of -0.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.5% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Alnylam. Also, the stock has a VGM Score of F.
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