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Clovis (CLVS) Down 3.2% Since Last Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for Clovis Oncology (CLVS). Shares have lost about 3.2% in that time frame, underperforming the S&P 500.

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

Clovis Q2 Earnings Miss, Rubraca Sales Down

Clovis reported second-quarter 2021 net loss of 61 cents per share, wider than the Zacks Consensus Estimate of a loss of 57 cents but narrower than the year-ago loss of $1.15.

Adjusted loss (excluding acquired in-process research and development, and foreign currency loss) was 59 cents per share compared with $1.11 in the year-ago quarter.

Net revenues — entirely from Rubraca — were down almost 8% year over year to $36.8 million for the quarter, missing the Zacks Consensus Estimate of $40.8 million.

Quarter in Detail

Sales of Rubraca in the United States were $27.7 million, down 24.5% year over year. Lower sales were due to COVID-19 impacts. Ex-U.S. market sales were $9.1 million for the second quarter, up 184.4% year over year.

For the second quarter, research & development expenses decreased 35% year over year to $45.8 million, primarily due to lower spending on Rubraca clinical studies.

Selling, general and administrative expenses declined 21% year over year to $32.9 million, driven by cost-saving initiatives and savings due to the COVID-19 situation globally.

Clovis ended the quarter with $230.2 million of cash equivalents and available-for-sale securities compared with $190.9 million on Mar 31, 2021.

The company expects cash resources, and anticipated revenues and available financing sources to be enough to support operations for at least the next 12 months.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted 5% due to these changes.

VGM Scores

At this time, Clovis has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Clovis has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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