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Why Is ImmunoGen (IMGN) Down 8.7% Since Last Earnings Report?

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A month has gone by since the last earnings report for ImmunoGen (IMGN). Shares have lost about 8.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is ImmunoGen 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 catalysts.

ImmunoGen Q1 Earnings Beat Estimates, Revenues Miss

ImmunoGen incurred loss of 17 cents per share for the first quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of 19 cents per share and flat year over year.

Revenues came in at $15.7 million, which missed the Zacks Consensus Estimate of $16.9 million. Revenues were up 18.2% year over year.

Quarter in Details

First-quarter revenues included $15.6 million in non-cash royalty revenues, up 19.6% year over year.

ImmunoGen recorded license and milestone fees of $0.2 million in the first quarter, compared with $0.3 million in the year-ago quarter.

During the quarter, research and development expenses increased 25.6% from the year-ago level to $34.4 million. The significant increase was due to higher clinical activity related to development of mirvetuximab soravtansine.

General and administrative expenses increased 15.2% to $10.2 million in the first quarter of 2021.

ImmunoGen’s cash and cash equivalents increased to $283.1 million at the end of March 2021 compared with $293.9 million at the end of December 2020.

Maintains 2021 Guidance

ImmunoGen reiterated its previous guidance for revenues, operating expenses and cash resources in 2021. The company expects revenues for the full year to be between $65 million and $75 million.

The company expects operating expense to be in the range of $200-$210 million. It expects cash and cash equivalents to be between $140 million and $150 million at 2021-end.

It expects cash resources to be enough to fund its operations through the second half of 2022.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

VGM Scores

Currently, ImmunoGen 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 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, ImmunoGen has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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