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ImmunoGen Q3 Earnings: Can NasdaqGS:IMGN Hit Its -$0.18 EPS Target?

in EARNINGS/INVESTING IDEAS by

ImmunoGen, Inc. (NasdaqGS:IMGN) is scheduled to report Q3 earnings results on November 6, 2020.

The company is expected to report earnings of -$0.18/share on revenue of $15.223 million. The consensus earnings per share (EPS) of -$0.18/share is based on a poll of 5 analysts and represents a decline in eps of -28.9% over the same quarter last year, when the company reported earnings of -$0.14/share.

The revenue forecast of $15.223 million based on a poll of 9 analysts implies a year-over-year (YoY) growth in revenue of 14.6%. Last year the company reported $13.281 million in revenue for the quarter.

Expected to report EPS of -$0.18/share for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $15.22 $13.28 14.6%
EPS -$0.18 -$0.14 -28.9%

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarter.

What are your expectations from ImmunoGen, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 -$0.17 -$0.14 17.6% Beat
Q1, 2020 -$0.15 -$0.17 -10.0% Missed
Q4, 2019 -$0.04 $0.04 189.5% Beat
Q3, 2019 -$0.16 -$0.14 14.6% Beat
Q2, 2019 -$0.35 -$0.16 52.9% Beat
Q1, 2019 -$0.33 -$0.29 10.7% Beat
Q4, 2018 -$0.31 -$0.27 10.5% Beat
Q3, 2018 -$0.36 -$0.31 14.1% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by falling −5.9%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 31, 2020 $4.37 $4.11 −5.9% Decline
May 1, 2020 $4.08 $3.75 −8.1% Decline
February 14, 2020 $5.36 $6.80 26.9% Increase
November 1, 2019 $2.38 $3.04 27.7% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of 9.19, the model suggests that the company is likely an earnings manipulator. A value of 9.19 implies a 0.0% chance of earnings manipulation.

Fundamentals And Technical Analysis

ImmunoGen, Inc. is currently trading at $5.64/share, down −0.4% for the day. The company is trading at approximately 79.8% of its 52-week high of $7.07/share. The company’s stock price is up 37.2% since the last earnings report and up 3.3% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 65.61 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:IMGN Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −14.00 and a forward P/E multiple of −8.29.

ImmunoGen, Inc.’s current share price also implies a price-to-book (P/B) multiple of −40.14. The following table summarizes some other key fundamental ratios:

Data as of November 1, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $5.64
P/E Ratio −14.0x
P/E Ratio (Fwd) −8.3x
PEG Ratio −0.2
Total Debt / Total Capital 2.5%
Levered Free Cash Flow -$124.6 million
EV / EBITDA −17.2x

Finbox

ImmunoGen, Inc. is a small-cap stock with a market capitalization of $984.4 million and a total enterprise value of $790.3 million. The company operates in the Healthcare sector and the Biotechnology industry.

ImmunoGen, Inc., a clinical-stage biotechnology company, develops antibody-drug conjugate (ADC) therapies to treat cancer. Its product candidates include mirvetuximab soravtansine, an ADC targeting folate-receptor alpha, which is in Phase III clinical trial for the treatment of platinum-resistant ovarian cancer; and IMGN632, a CD123-targeting ADC that is in Phase I clinical trial for treating AML and blastic plasmacytoid dendritic cell neoplasm. Its preclinical program include IMGC936, an investigational ADC in co-development with MacroGenics, Inc. ImmunoGen, Inc. has collaborations with Roche; Amgen/Oxford BioTherapeutics; sanofi-aventis U. S. LLC; Biotest AG; Bayer HealthCare AG; Eli Lilly and Company; Novartis Institutes for BioMedical Research, Inc.; CytomX Therapeutics, Inc.; Takeda Pharmaceutical Company Limited; Fusion Pharmaceuticals Inc.; Debiopharm International SA; Jazz Pharmaceuticals Ireland Limited; and MacroGenics, Inc. ImmunoGen, Inc. was founded in 1980 and is headquartered in Waltham, Massachusetts.

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