Why Is Celldex (CLDX) Down 4.4% Since the Last Earnings Report?

A month has gone by since the last earnings report for Celldex Therapeutics, Inc. CLDX. Shares have lost about 4.4% in that time frame, underperforming the market.

Will the recent negative trend continue leading up to the stock's next earnings release, or is it 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.

Celldex Q4 Loss Narrows; Sales Beat

Celldex posted fourth-quarter 2016 loss of $0.30 per share, narrower than both the Zacks Consensus Estimate of a loss of $0.34 and the year-ago loss of $0.33.

Total revenue in the fourth quarter of 2016 rose 5.6% year over year to $1.9 million, beating the Zacks Consensus Estimate of $1.09 million. Revenues were generated mainly under the clinical trial collaboration with Bristol-Myers. However, the company recorded lower revenues under the research and development agreement with Rockefeller University in the quarter.

Research and development expenses inched up 2.9% from the year-ago period to $24.6 million. General and administrative spend rose 7.2% to $11.9 million.

At the end of 2016, Celldex had cash, cash equivalents and marketable securities of $189.8 million compared with $203.2 million as of September 30, 2016. Celldex expects that this cash along with anticipated proceeds from future sales of its common stock under the agreement with Cantor will be enough to fund working capital requirements and planned operations through 2018. However, the guidance assumes that Celldex will pay future Kolltan contingent milestones, if any, in stock and not cash.

Full-Year 2016 Results

Full year 2016 loss per share was $1.27, narrower than the Zacks Consensus Estimate of a loss of $1.32 as well as the year-ago loss of $1.31 per share.

Full year 2016 revenues came in at $6.8 million, also beating the Zacks Consensus Estimate of $6.0 million and up 23.6% from the year-ago period.

Pipeline Update

At the call, the company mentioned that it may bring in a partner for glembatumumab.

Meanwhile at the call, the company said that it is not advancing the phase I combination studies of varlilumab/ Tecentriq and varlilumab/Sutent in renal cell carcinoma to phase II.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.

Celldex Therapeutics, Inc. Price and Consensus

 

Celldex Therapeutics, Inc. Price and Consensus | Celldex Therapeutics, Inc. Quote

VGM Scores

At this time, Celldex's stock has an average Growth Score of 'C', though it is lagging a lot on the momentum front with an 'F'. Following the exact same course, the stock was allocated also 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.

The company's stock is suitable solely for growth based on our styles scores.

Outlook

The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Celldex Therapeutics, Inc. (CLDX): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research