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Why Is Axsome (AXSM) Down 30.3% Since Last Earnings Report?
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A month has gone by since the last earnings report for Axsome Therapeutics (AXSM - Free Report) . Shares have lost about 30.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Axsome 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 drivers.
Axsome incurred a loss of $1.03 per share in first-quarter 2022, wider than the Zacks Consensus Estimate of a loss of $1.02. AXSM had reported a loss of 78 cents per share in the year-ago period.
Axsome currently does not have any approved product in its portfolio. As a result, the company is yet to generate revenues.
Quarter in Detail
Research and development expenses were $12.6 million in the quarter, down 24.2% from the year-ago period’s level owing to NDA filing expenses incurred in the year-ago period.
General and administrative expenses were $25.7 million, up 128.5% year over year. The significant increase was due to higher pre-commercialization activities related to the potential launch of AXS-05 and AXS-07.
As of Mar 31, 2022, Axsome had cash worth $84.7 million compared with $86.5 million on Dec 31, 2021.
2022 Guidance
Management believes that its cash balance as of March 2022 end and its $300 million term-loan facility will be enough to fund operations into 2024.
Axsome expects an increase in operating expenses on account of pipeline development and commercialization activities.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
At this time, Axsome has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Axsome has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Axsome belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Seattle Genetics , has gained 3.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Seattle Genetics reported revenues of $426.46 million in the last reported quarter, representing a year-over-year change of +28.5%. EPS of -$0.74 for the same period compares with -$0.67 a year ago.
Seattle Genetics is expected to post a loss of $0.82 per share for the current quarter, representing a year-over-year change of -74.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.5%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Seattle Genetics. Also, the stock has a VGM Score of F.
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Why Is Axsome (AXSM) Down 30.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Axsome Therapeutics (AXSM - Free Report) . Shares have lost about 30.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Axsome 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 drivers.
Axsome Posts Wider-Than-Expected Q1 Loss, Revenues Nil
Axsome incurred a loss of $1.03 per share in first-quarter 2022, wider than the Zacks Consensus Estimate of a loss of $1.02. AXSM had reported a loss of 78 cents per share in the year-ago period.
Axsome currently does not have any approved product in its portfolio. As a result, the company is yet to generate revenues.
Quarter in Detail
Research and development expenses were $12.6 million in the quarter, down 24.2% from the year-ago period’s level owing to NDA filing expenses incurred in the year-ago period.
General and administrative expenses were $25.7 million, up 128.5% year over year. The significant increase was due to higher pre-commercialization activities related to the potential launch of AXS-05 and AXS-07.
As of Mar 31, 2022, Axsome had cash worth $84.7 million compared with $86.5 million on Dec 31, 2021.
2022 Guidance
Management believes that its cash balance as of March 2022 end and its $300 million term-loan facility will be enough to fund operations into 2024.
Axsome expects an increase in operating expenses on account of pipeline development and commercialization activities.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
At this time, Axsome has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Axsome has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Axsome belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Seattle Genetics , has gained 3.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Seattle Genetics reported revenues of $426.46 million in the last reported quarter, representing a year-over-year change of +28.5%. EPS of -$0.74 for the same period compares with -$0.67 a year ago.
Seattle Genetics is expected to post a loss of $0.82 per share for the current quarter, representing a year-over-year change of -74.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.5%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Seattle Genetics. Also, the stock has a VGM Score of F.