A month has gone by since the last earnings report for AVEO Pharmaceuticals . Shares have added about 39.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is AVEO 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 drivers.
AVEO Pharmaceuticals Q4 Earnings Beat & Sales Miss
AVEO incurred a loss of 28 cents per share in fourth-quarter 2019, narrower than the Zacks Consensus Estimate of a loss of 58 cents and also the year-ago loss of 35 cents.
The company’s top line comprises collaboration and licensing revenues plus partnership royalties. Total revenues in the reported quarter were $0.7 million compared with $1.5 million reported in fourth-quarter 2018. Moreover, revenues missed the Zacks Consensus Estimate of $2 million.
Operating Expenses
Research & development expenses declined 13.4% year over year to $4.5 million. However, general and administrative expenses increased 11.5% year over year to $2.9 million.
Cash Guidance
AVEO had $47.7 million worth of cash, cash equivalents and marketable securities as of Dec 31, 2019 compared with $57.5 million on Sep 30, 2019. The company believes that its cash balance along with anticipated partnership payments and royalty revenues from the Fotivda sale by EUSA will help fund its planned operations through the second quarter of 2021.
How Have Estimates Been Moving Since Then?
Estimates revision followed a downward path over the past two months.
VGM Scores
Currently, AVEO has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the lowest 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.
Outlook
AVEO has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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AVEO (AVEO) Up 39.9% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for AVEO Pharmaceuticals . Shares have added about 39.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is AVEO 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 drivers.
AVEO Pharmaceuticals Q4 Earnings Beat & Sales Miss
AVEO incurred a loss of 28 cents per share in fourth-quarter 2019, narrower than the Zacks Consensus Estimate of a loss of 58 cents and also the year-ago loss of 35 cents.
The company’s top line comprises collaboration and licensing revenues plus partnership royalties. Total revenues in the reported quarter were $0.7 million compared with $1.5 million reported in fourth-quarter 2018. Moreover, revenues missed the Zacks Consensus Estimate of $2 million.
Operating Expenses
Research & development expenses declined 13.4% year over year to $4.5 million. However, general and administrative expenses increased 11.5% year over year to $2.9 million.
Cash Guidance
AVEO had $47.7 million worth of cash, cash equivalents and marketable securities as of Dec 31, 2019 compared with $57.5 million on Sep 30, 2019. The company believes that its cash balance along with anticipated partnership payments and royalty revenues from the Fotivda sale by EUSA will help fund its planned operations through the second quarter of 2021.
How Have Estimates Been Moving Since Then?
Estimates revision followed a downward path over the past two months.
VGM Scores
Currently, AVEO has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the lowest 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.
Outlook
AVEO has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.