Why Is Allogene Therapeutics (ALLO) Up 9.4% Since Last Earnings Report?
It has been about a month since the last earnings report for Allogene Therapeutics (ALLO). Shares have added about 9.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Allogene Therapeutics 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 latest earnings report in order to get a better handle on the important catalysts.
Narrower Than Expected Loss in Q2, Nil Sales
Allogene incurred a second-quarter 2025 loss of 23 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 28 cents. In the year-ago period, the company had incurred a loss of 35 cents per share.
As the company lacks a marketed product in its portfolio, it did not report any sales during the quarter. In the year-ago period, Allogene recorded collaboration revenues worth $0.02 million.
Quarter in Detail
Research & development (R&D) expenses totaled $40.2 million, down 20.2% from the year-ago quarter’s level.
General and administrative expenses declined 11.2% year over year to $14.3 million.
As of June 30, 2025, Allogene had $302.6 million in cash, cash equivalents and investments compared with $335.5 million as of March 31, 2025.
2025 Guidance
The company continues to expect operating expenses in 2025 to be around $230 million.
Cash burn for 2025 is expected to be around $150 million. Based on these expected savings, Allogene claims that its cash runway will fund operations into the second half of 2027.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates revision.
VGM Scores
Currently, Allogene Therapeutics has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for value investors.
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 looks promising. It comes with little surprise Allogene Therapeutics has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Allogene Therapeutics is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Beam Therapeutics Inc. (BEAM), a stock from the same industry, has gained 22.2%. The company reported its results for the quarter ended June 2025 more than a month ago.
Beam Therapeutics reported revenues of $8.47 million in the last reported quarter, representing a year-over-year change of -28%. EPS of -$1.00 for the same period compares with -$1.11 a year ago.
Beam Therapeutics is expected to post a loss of $1.02 per share for the current quarter, representing a year-over-year change of +12.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.8%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Beam Therapeutics. Also, the stock has a VGM Score of F.
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Today, See These 5 Potential Home Runs >>Allogene Therapeutics, Inc. (ALLO) : Free Stock Analysis Report
Beam Therapeutics Inc. (BEAM) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
