Inovio Pharmaceuticals (INO) reports a second-quarter loss, beating revenue estimates

Inovio Pharmaceuticals (INO) came out with quarterly loss of $0.46 per share versus the Zacks Consensus Estimate of a loss of $0.30. This compares to a loss of $0.39 per share a year ago. These data are adjusted for one-off items.

This quarterly report represents an earnings surprise of -53.33%. A quarter ago, it was expected that this drugmaker would post a loss of $0.28 per share when it actually produced a loss of $0.36, delivering an earnings surprise of -28.57%.

Over the last four quarters, the company has surpassed consensus EPS estimates only once.

Inovio, which belongs to the Zacks Medical – Biomedical and Genetics industry, posted revenues of $0.78 million for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 264.65%. This compares to revenues of $0.27 million a year earlier. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of current share price movements based on recently released data and future earnings expectations will depend primarily on management’s commentary following the earnings conference call.

Year to date, Inovio shares have lost about 52.7%, while the S&P 500 is down -13.1%.

What’s next for Inovio?

While Inovio has underperformed the market this year, investors are wondering: what’s next for this stock?

There are no easy answers to this key question, but one reliable indicator that can help investors address this is the company’s earnings outlook. This includes not only the current consensus earnings expectations for the coming quarter(s), but also how those expectations have changed recently.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions themselves or rely on a proven rating tool like the Zacks Rank, which has an impressive history of harnessing the power of earnings estimate revisions.

Ahead of the earnings release, Inovio’s estimate revisions trend is unfavorable. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank of #4 (Sell) for the stock. As such, we can expect the stock to underperform the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the coming days. The current consensus EPS estimate is -$0.23 on $0.23M in revenues for the coming quarter and -$1.20 on $0.89M in revenues for the current fiscal year.

Investors should be aware that the outlook for an industry can also have a significant impact on stock prices. In terms of the Zacks Industry Rank, the Medical-Biomedical and Genetics industry currently ranks in the top 34% of the 250+ Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another company in the same industry, Aravive (ARAV), is yet to report earnings for the quarter ending June 2022.

The biopharmaceutical company is expected to report quarterly loss of $0.62 per share in its upcoming report, representing a year-over-year change of -77.1%. The consensus earnings per share estimate for the quarter remained unchanged over the last 30 days.

Aravive’s revenue is expected to be $1.34 million, down 64.6% from the same quarter last year.

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