It has been about a month since the last earnings report for Iovance Biotherapeutics (IOVA). Shares have lost about 6.9% in that time frame, underperforming the S&P 500.

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

Q4 Earnings & Sales Fall Short of Estimates

Iovance incurred a loss of 45 cents per share in fourth-quarter 2023, wider than the Zacks Consensus Estimate of a loss of 44 cents. In the year-ago quarter, the company reported a loss of 64 cents.

During the quarter, the company generated total revenues of $0.5 million — entirely from product sales of Proleukin (aldesleukin). The reported sales missed the Zacks Consensus Estimate of $1.3 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 9% from the year-ago quarter’s levels. The upside was caused by growth of the internal R&D team and increased expenses on the initiation of the phase III TILVANCE-301 study.

Selling, general and administrative expenses (SG&A) rose 13% from the prior-year quarter’s figure to $29.9 million. The upside can be attributed to an increase in headcount and other related costs.

The company had $346.3 million in cash, cash equivalents, short-term investments and restricted cash as of Dec 31, 2023, compared with $427.8 million on Sep 30, 2023. Management expects this cash balance plus anticipated product revenues, combined with net proceeds of around $197.1 million raised via a public offering earlier this month, to fund the company’s current and planned operations into second-half 2025.

Full-Year Results

Iovance generated total revenues worth $1.2 million during the full year 2023. In the year-ago period, it did not generate any revenues.



The company incurred a loss of $1.89 per share for 2023 compared with a loss of $2.49 in the year-ago period.

2024 Guidance

Management expects cash burn for 2024 to be in the range of $320 million and $340 million, excluding one-time expenses. It also expects to generate significant revenues from Amtagvi and Proleukin product sales, commencing from second-quarter 2024.

How Have Estimates Been Moving Since Then?

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

VGM Scores

Currently, Iovance Biotherapeutics has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated 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.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. 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, MannKind (MNKD), has gained 10.2% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.

MannKind reported revenues of $58.47 million in the last reported quarter, representing a year-over-year change of +62.2%. EPS of $0.02 for the same period compares with -$0.07 a year ago.

For the current quarter, MannKind is expected to post earnings of $0.02 per share, indicating a change of +150% from the year-ago quarter. The Zacks Consensus Estimate has changed +66.7% over the last 30 days.

MannKind has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.

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