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Immunovant, Inc. (IMVT) Up 9.3% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for Immunovant, Inc. (IMVT). Shares have added about 9.3% 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, Inc. 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.

Immunovant Reports Wider-Than-Expected Loss in Q1

Immunovantreported a net loss of 31 cents per share in the first quarter of fiscal 2022 (ended Jun 30, 2021), wider than the Zacks Consensus Estimate of a loss of 30 cents. In the year-ago quarter, the company reported a loss of 38 cents.

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

Quarter in Detail

In the reported quarter, research and development (R&D) expenses were $18.7 million, up 10.6% from the year-ago quarter. The year-over-year increase was attributable to personnel-related expenses and higher costs related to clinical activities.

General and administrative (G&A) expenses were $11.2 million in the reported quarter, up 15.4% on a year-over-year basis. The increase was primarily due to higher personnel costs and stock-based compensation expenses resulting from higher headcount.

As of Jun 30, 2021, the company had cash balance of approximately $379 million compared with $400 million as at Mar 31, 2021.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 23.53% due to these changes.

VGM Scores

Currently, Immunovant, Inc. has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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 trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Immunovant, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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