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Why Is Immunovant, Inc. (IMVT) Up 13.9% Since Last Earnings Report?

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It has been about a month since the last earnings report for Immunovant, Inc. (IMVT - Free Report) . Shares have added about 13.9% in that time frame, outperforming the S&P 500.

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

Immunovant Sees Wider Q4 Loss, to Study Batoclimab in TED

Immunovant reported net loss of 41 cents per share in the fourth quarter of fiscal 2022 (ended Mar 31, 2022), wider than the Zacks Consensus Estimate of a loss of 38 cents. In the year-ago quarter, the company had reported a loss of 29 cents.

Currently, the company does not have any approved product in its portfolio. As a result, it is yet to generate revenues.

Quarter in Detail

In the reported quarter, research and development (R&D) expenses were $32 million, up 72% from the year-ago quarter. The year-over-year surge was due to increased personnel-related expenses, higher costs of cross-indication clinical studies and clinical research costs.

General and administrative (G&A) expenses were $15.2 million in the reported quarter, up 47.5% on a year-over-year basis. The uptick was primarily due to increased personnel-related expenses as well as other professional costs.

As of Mar 31, 2022, the company had cash balance of approximately $493.8 million compared with $527 million as of Dec 31, 2021.

With its existing cash balance, Immunovant expects to fund its operating expenses and capital expenditure requirements through 2025.

How Have Estimates Been Moving Since Then?

It turns out, estimates review flatlined during the past month.

VGM Scores

At this time, Immunovant, Inc. has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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

Immunovant, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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