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Why Is Inovio (INO) Down 2% Since the Last Earnings Report?

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A month has gone by since the last earnings report for Inovio Pharmaceuticals, Inc. (INO - Free Report) . Shares have lost about 2% in that time frame, outperforming the market.

Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? 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.

Inovio Fourth-Quarter Loss Wider than Expected

Inovio reported a loss of $0.36 for the fourth quarter of 2016. The Zacks Consensus Estimate was of a loss of $0.29 per share. In the year-ago quarter, the company had posted loss of $0.25.

Quarter in Details

Inovio reported revenues of $8.5 million in the fourth quarter, which surpassed the Zacks Consensus Estimate of $6.6 million. Moreover, revenues grew 44% from the year-ago period.

Research and development expenses increased 53.2% to $23.9 million while general and administrative expenses increased 42.86% to $7.0 million.

Full-Year 2016 Results

Full-year 2016 loss per share was $1.01 per share, wider than the Zacks Consensus Estimate of a loss of $0.94. In the year-ago period, the company had reported a loss of $0.43.

Full-year 2016 revenues came in at $35.4 million, a decline of 12.81% from the year-ago period, primarily due to upfront payment of $15 million from MedImmune, the global biologics research and development arm of AstraZeneca in 2015.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.

VGM Scores

At this time, Inovio Pharmaceuticals' stock has a poor Growth Score of 'F', however its momentum is doing a bit better with a 'D'. Charting a somewhat similar path, 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 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.

Our style scores indicate investors will probably be better served looking elsewhere.

Outlook

The stock has a Zacks Rank #4 (Sell). We are expecting a below average return from the stock in the next few months.


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