A month has gone by since the last earnings report for Allogene Therapeutics (ALLO Quick QuoteALLO - Free Report) . Shares have added about 6.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Allogene Therapeutics 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.

Narrower Than Expected Loss in Q2, Nil Sales

Allogene incurred an adjusted loss (excluding impairment of long-lived assets) of 32 cents per share in second-quarter 2024, narrower than the Zacks Consensus Estimate of a loss of 35 cents.

Inclusive of impairment charges, the company posted a loss of 35 cents in the second quarter. In the year-ago period, the company reported a loss of 54 cents. No impairment charge was recorded during the year-ago period.

ALLO did not generate any revenues during the quarter. In the year-ago period, management recorded revenues worth $0.02 million.

Quarter in Detail

Research & development (R&D) expenses were $50.4 million, down 19% from the year-ago quarter’s level.

General and administrative (G&A) expenses declined 13% year over year to $16.1 million.

Allogene had $444.6 million of cash, cash equivalents and investments as of Jun 30, 2024, compared with $397.3 million as of Mar 31, 2024. This rise in cash balance is due to the inflow of funds from a secondary issue of common stock worth gross proceeds of around $110 million floated in May 2024. Management claims that the new inflow will help Allogene extend its cash runway into second-half 2026.

2024 Guidance

Allogene reiterated its previously issued guidance for 2024. It anticipates incurring operating expenses to be around $300 million for the full year, which includes estimated non-cash stock-based compensation expenses of nearly $60 million. Cash burn for the year is expected to be nearly $200 million.

How Have Estimates Been Moving Since Then?

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

The consensus estimate has shifted 20.86% due to these changes.

VGM Scores

Currently, Allogene Therapeutics has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. 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

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Allogene Therapeutics 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

Allogene Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Incyte (INCY Quick QuoteINCY - 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.

Incyte reported revenues of $1.04 billion in the last reported quarter, representing a year-over-year change of +9.3%. EPS of -$1.82 for the same period compares with $0.99 a year ago.

Incyte is expected to post earnings of $1.35 per share for the current quarter, representing a year-over-year change of +22.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -8.3%.

Incyte has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.