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Why Is Iovance Biotherapeutics (IOVA) Up 53% Since Last Earnings Report?

A month has gone by since the last earnings report for Iovance Biotherapeutics (IOVA). Shares have added about 53% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Iovance Biotherapeutics 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.

Q3 Earnings In Line With Estimates, Lags Sales

Iovance incurred a loss of 46 cents per share in third-quarter 2023, in line with the Zacks Consensus Estimate. In the year-ago quarter, the company reported a loss of 63 cents.

During the quarter, the company generated total revenues of $0.5 million — entirely from Proleukin product sales. The reported sales missed the Zacks Consensus Estimate of $3.8 million. In the year-ago quarter, Iovance did not record any revenues.

Quarter in Detail

Research & development (R&D) expenses were $87.5 million, up 21% from the year-ago quarter’s levels. The upside was primarily due to growth of the internal R&D team and increased expenses on the initiation of new clinical studies.

Selling, general and administrative expenses (SG&A) declined 3% from the prior-year quarter’s figure to $27.0 million. The downside can be attributed to lower stock-based compensation expenses and other costs.

The company had $427.8 million in cash, cash equivalents, short-term investments and restricted cash as of Sep 30, 2023, compared with $317.3 million on Jun 30, 2023. During the quarter, Iovance raised around $203.2 million in net proceeds from its public offering and the at-the-market (ATM) equity financing facility. This cash balance is expected to fund the company’s current and planned operations into 2025.

How Have Estimates Been Moving Since Then?

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

VGM Scores

At this time, Iovance Biotherapeutics has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, 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

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. 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, Moderna (MRNA), has gained 13% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.

Moderna reported revenues of $1.83 billion in the last reported quarter, representing a year-over-year change of -45.6%. EPS of -$1.39 for the same period compares with $2.53 a year ago.

Moderna is expected to post a loss of $1.33 per share for the current quarter, representing a year-over-year change of -136.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -7.5%.

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

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Iovance Biotherapeutics, Inc. (IOVA) : Free Stock Analysis Report

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