It has been about a month since the last earnings report for Allogene Therapeutics (ALLO). Shares have lost about 14.9% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Allogene Posts Narrower-Than-Expected Q1 Loss, Sales Beat
Allogene incurred a loss of 56 cents per share in first-quarter 2022, narrower than the Zacks Consensus Estimate of a loss of 59 cents but wider than the year-ago loss of 25 cents.
Allogene recorded revenues of $61,000 during the quarter. The Zacks Consensus Estimate was $0.0 million. In the year-ago quarter, Allogene recorded $38.3 million of revenues.
Quarter in Detail
Research & development (R&D) expenses were $60.2 million, up 9% from the year-ago quarter’s level.
General and administrative (G&A) expenses increased 21.6% year over year to $19.9 million.
Allogene had $733.1 million of cash, cash equivalents and investments as of Mar 31, 2022, compared with $809.5 million as of Dec 31, 2021.
2022 Guidance
Allogene reiterated its guidance for 2022 operating expenses. Operating expenses are expected between $360 million and $390 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
Currently, Allogene Therapeutics has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. 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 F. 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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