Key Takeaways
Agenus Inc. (AGEN) reported first-quarter earnings of $1.02 per share, missing the Zacks Consensus Estimate of $2.10 and potentially jeopardizing a recent 21.7 percent rally in its stock price.
"The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call," Zacks analysts noted in a report following the release.
The company's revenue of $33.74 million, while missing estimates, marked a 40.2 percent increase from the $24.07 million reported in the same quarter a year ago. The current earnings of $1.02 per share compare favorably to the loss of $1.03 per share recorded in the first quarter of the previous year.
The significant miss comes after a period of favorable estimate revisions that earned the stock a Zacks Rank #1 (Strong Buy) ahead of the report. Investors will now watch to see if analysts revise the current fiscal year consensus estimate of $2.10 EPS on $232.9 million in revenue.
This was the third time in the last four quarters that Agenus has missed earnings estimates. The company has topped revenue consensus estimates twice over the same period.
The biotech firm, which focuses on immuno-oncology, has outperformed the broader market this year. Its 21.7% year-to-date gain compares favorably to the S&P 500's 8.1% rise. Other biotech companies reporting this quarter showed mixed results. TG Therapeutics (TGTX) beat revenue expectations on strong sales of its drug Briumvi, while Zoetis (ZTS) missed on both revenue and earnings, citing a competitive landscape.
The sharp earnings miss raises questions about the company's near-term execution and could put pressure on its valuation. The next catalyst for the stock will be management's commentary on the upcoming earnings call and any subsequent revisions to analyst estimates for the coming quarter.
This article is for informational purposes only and does not constitute investment advice.
