A month has gone by since the last earnings report for Agenus (AGEN). Shares have added about 19.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Agenus due for a pullback? 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.

Agenus Q2 Earnings Miss Estimates, Revenues Beat

Agenus reported second-quarter 2019 loss of 38 cents per share, wider than the Zacks Consensus Estimate of a loss of 33 cents and the year-ago quarter’s loss of 24 cents.

The company generated revenues of $15.7 million, including non-cash royalties, down from $15.9 million in the year-ago quarter. Revenues beat the Zacks Consensus Estimate of $5 million.

Quarterly Highlights

Research and development expenses surged 54.6% to $45.2 million. General and administrative expenses decreased 1% to $11.9 million.

Pipeline Update

Agenus is a clinical-stage, immuno-oncology company with a comprehensive portfolio consisting of antibody-based therapeutics, adjuvants and cancer vaccine platforms.

In December 2018, the company inked a collaboration deal with Gilead Sciences Inc. to develop and commercialize up to five immuno-oncology (I-O) therapies. Agenus received $150 million in upfront cash payment and equity investment and is eligible to receive approximately $1.7 billion in future fees and milestones. In January 2019, it announced the closing of its deal with Gilead.

In August 2019, Agenus received $7.5 million in cash as a milestone payment from Gilead, after the FDA accepted the former’s investigational new drug (IND) application for AGEN2373.

GlaxoSmithKline plc’s herpes zoster vaccine, Shingrix, which contains Agenus’ proprietary immune adjuvant QS-21 Stimulon achieved over $1 billion in revenues in its first year of launch. It remains on track to reach $1.3 billion in revenues in 2019.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month. The consensus estimate has shifted -23.67% due to these changes.

VGM Scores

Currently, Agenus has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, 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 downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Agenus has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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