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Why Is Immunovant (IMVT) Up 13.8% 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 13.8% 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 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 catalysts.

Immunovant’s Q1 Earnings Miss Estimates, Pipeline in Focus

Immunovant reported first-quarter fiscal 2025 net loss of 60 cents per share, wider than the Zacks Consensus Estimate of a loss of 52 cents. The reported figure is also wider than the year-ago quarter's loss of 57 cents per share.

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

Quarter in Detail

Research and development (R&D) expenses totaled $75.5 million, up 49% from the year-ago quarter’s reported figure. The year-over-year rise can be attributed to increased operational costs and R&D activities for IMVT-1402 and batoclimab programs.

General and administrative expenses amounted to $18.8 million, up 22% on a year-over-year basis. The rise was primarily due to an increase in personnel-related expenses and legal and other professional fees.

As of Jun 30, 2024, Immunovant had a cash balance of $560 million compared with $635 million as of Mar 31, 2024.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

The consensus estimate has shifted -14.81% due to these changes.

VGM Scores

At this time, Immunovant has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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 these revisions indicates a downward shift. Notably, Immunovant 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

Immunovant belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Blueprint Medicines (BPMC - Free Report) , has gained 1.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.

Blueprint Medicines reported revenues of $138.16 million in the last reported quarter, representing a year-over-year change of +140%. EPS of -$0.80 for the same period compares with -$2.19 a year ago.

For the current quarter, Blueprint Medicines is expected to post a loss of $1.01 per share, indicating a change of +54.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Blueprint Medicines. Also, the stock has a VGM Score of F.


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