A month has gone by since the last earnings report for Agios Pharmaceuticals, Inc. AGIO. Shares have added about 8.5% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? 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.
Agios Pharma Q4 Loss Lower than ExpectedAgios Pharmaceuticals posted fourth-quarter 2016 loss of $1.34 per share, narrower than the Zacks Consensus Estimate of a loss of $1.55 but wider than the year-ago loss of $1.08.Agios does not have any approved product in its portfolio yet. Thus, its top line mainly comprises collaboration revenues and milestone payments. Total collaboration revenue in the fourth quarter amounted to approximately $22.6 million, which beat the Zacks Consensus Estimate of $8 million. Reported revenues were significantly higher than $6.2 million in the year-ago period.Research & development expenses were up almost 75.1% year over year to $64.7 million. The increase was largely due to higher investments associated with the advancement of the company's lead investigational medicines into late-stage studies. General and administrative expenses increased 50% year over year to $15.4 million due to a rise in headcount and other professional expenses to support the expansion of its operations.2016 ResultsFull-year sales increased 18.2% year over year to $69.9 million. Sales beat the Zacks Consensus Estimate of $55.3 million.The full-year loss of $5.07 per share was also narrower than Zacks Consensus Estimate of a loss of $5.28 per share. The company had incurred loss of $3.15 per share a year ago.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimate flatlined during the past month. There has been one revision higher for the current quarter compared to one lower. In the past month, the consensus estimate has shifted lower by 23.3% due to these changes.
Agios Pharmaceuticals, Inc. Price and Consensus
At this time, Agios' stock has an average Growth Score of 'C', though it is lagging a lot on the momentum front with an 'F'. Following the exact same course, the stock was allocated also 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.
The company's stock is suitable solely for growth based on our styles scores.
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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