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Why Is Iovance Biotherapeutics (IOVA) Down 9.2% Since Last Earnings Report?

A month has gone by since the last earnings report for Iovance Biotherapeutics (IOVA). Shares have lost about 9.2% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Iovance Biotherapeutics due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Reports Q4 Earnings In Line With Estimates

Iovance incurred a loss of 64 cents per share in fourth-quarter 2022, in line with the Zacks Consensus Estimate. The quarterly earnings beat our model estimates of loss of 68 cents. In the year-ago quarter, the company reported a loss of 63 cents.

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Without any marketed product and revenue-generating collaboration, the company did not record any revenues during the quarter.

Quarter in Detail

Research & development expenses were $80.6 million, up 6.6% from the year-ago quarter’s levels, primarily due to increased related personnel and facility building costs.

General and administrative expenses increased 11.0% from the prior-year quarter’s figure to $26.5 million due to an increase in related personnel costs and facility-related costs.

The company had $478.3 million in cash, cash equivalents, short-term investments and restricted cash as of Dec 31, 2022, compared with $366.6 million on Sep 30, 2022.

Iovance has also raised $450 in net proceeds from ATM equity financing during the fourth-quarter 2022 and first-quarter 2023. Based on the cash position, management expects to fund the company’s current and planned operations into second-half 2024.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates.

The consensus estimate has shifted 17.34% due to these changes.

VGM Scores

Currently, Iovance Biotherapeutics has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. 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 trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Iovance Biotherapeutics 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

Iovance Biotherapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Seattle Genetics (SGEN), has gained 13.5% over the past month. More than a month has passed since the company reported results for the quarter ended December 2022.

Seattle Genetics reported revenues of $528.15 million in the last reported quarter, representing a year-over-year change of +22.9%. EPS of -$0.80 for the same period compares with -$0.95 a year ago.

Seattle Genetics is expected to post a loss of $0.83 per share for the current quarter, representing a year-over-year change of -12.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Seattle Genetics. Also, the stock has a VGM Score of F.

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