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Why Is Allogene Therapeutics (ALLO) Up 40.6% Since Last Earnings Report?

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It has been about a month since the last earnings report for Allogene Therapeutics (ALLO - Free Report) . Shares have added about 40.6% 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 drivers.

Allogene’s Q1 Earnings Beat Estimates

Allogene incurred loss of 50 cents per share in first-quarter 2020, wider than the year-ago quarter’s loss of 32 cents. The Zacks Consensus Estimate was pegged at a loss of 57 cents.

The company did not record any revenues during the quarter.

Quarter in Detail

Research & development (R&D) expenses were $42 million, up 79.6% from the year-ago quarter. The significant increase was presumably due to higher clinical activities.

General and administrative (G&A) expenses increased 19.8% year over year to $8 million.

The company had $553 million in cash, cash equivalents and investments as of Mar 31, 2020 compared with $588.9 million as of Dec 31, 2019.

2020 Guidance Maintained

Allogene maintained its previous guidance for 2020 provided on the fourth-quarter earnings call. The company expects full-year loss to be in the range of $260-$280 million, including include stock-based compensation expense of $70 million to $75 million.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 7.15% due to these changes.

VGM Scores

At this time, Allogene Therapeutics has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. 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 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. It comes with little surprise Allogene Therapeutics has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.


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