A month has gone by since the last earnings report for Clovis Oncology, Inc. CLVS . Shares have lost about 9.3% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is CLVS due for a breakout? 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.
Clovis Q4 Loss Narrower Than Expected, Revenues Miss
Clovis incurred an adjusted loss of $1.27 per share in the fourth quarter of 2017, which was narrower than the year-ago loss of $1.83 per share as well as the Zacks Consensus Estimate of a loss of $1.28.
Net product revenues, entirely from Rubraca, were approximately $16.8 million in the quarter, up a mere 1.2% sequentially. However, revenues missed the Zacks Consensus Estimate of $19.22 million.
Importantly, the company registered 1400 new patients on Rubraca therapy since its approval. In the fourth quarter, 300 new patients were registered.
In the year-ago quarter, Clovis had generated revenues of $0.08 million.
Quarter in Detail
During the fourth quarter, research & development expenses decreased 30.2% year over year to $38 million, primarily due to decreased development activities related to Rubraca and rociletinib programs. However, selling, general and administrative (SG&A) expenses escalated 216% year over year to $38.5 million, reflecting increased activities to support commercialization of Rubraca.
Cash used in operating activities in the quarter was $65.6 million, higher than $54.7 million in the year-ago quarter.
Clovis ended the quarter with $563.7 million of cash equivalents and available-for-sale securities supported by the proceeds raised through share offerings made in January and June 2017.
Product sales for the full year were $55.5 3 million. Rubraca generated sales of $0.08 million in 2016. Adjusted loss per share narrowed 34.2% year over year to $5.12.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There has been one revision higher for the current quarter.
Clovis Oncology, Inc. Price and Consensus
Clovis Oncology, Inc. Price and Consensus | Clovis Oncology, Inc. Quote
At this time, CLVS has a subpar Growth Score of D, a grade with the same score on the momentum front. The stock was allocated a grade of F on the value side, putting it in the bottom 20% 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.
Our style scores indicate investors will probably be better served looking elsewhere.
Estimates have been trending upward for the stock and the magnitude of this revision indicates a downward shift. Notably, CLVS has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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