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Xencor (NasdaqGM:XNCR) Q3 2020 Earnings Prep

in EARNINGS/INVESTING IDEAS by

Xencor, Inc. (NasdaqGM:XNCR) is scheduled to report Q3 earnings results after markets close for trading on November 5, 2020.

The company is expected to report earnings of -$0.23/share on revenue of $35.977 million. The consensus earnings per share (EPS) of -$0.23/share is based on a poll of 6 analysts and represents a decline in eps of -30.6% over the same quarter last year, when the company reported earnings of -$0.18/share.

The revenue forecast of $35.977 million based on a poll of 10 analysts implies a year-over-year (YoY) growth in revenue of 65.3%. Last year the company reported $21.76 million in revenue for the quarter.

Expected to report EPS of -$0.23/share for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $35.98 $21.76 65.3%
EPS -$0.23 -$0.18 -30.6%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 2 quarters.

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

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 -$0.50 -$0.61 -21.3% Missed
Q1, 2020 -$0.41 -$0.14 65.8% Beat
Q4, 2019 -$0.41 -$0.47 -15.4% Missed
Q3, 2019 -$0.53 -$0.18 66.2% Beat
Q2, 2019 -$0.45 -$0.28 37.8% Beat
Q1, 2019 $0.09 $1.38 1,433.3% Beat
Q4, 2018 -$0.51 -$0.32 37.5% Beat
Q3, 2018 -$0.52 $0.05 109.7% 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 −3.2%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 4, 2020 $31.83 $30.82 −3.2% Decline
May 7, 2020 $31 $33.21 7.1% Increase
February 24, 2020 $35.17 $32.09 −8.8% Decline
November 5, 2019 $33.58 $33.24 −1.0% Decline

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 −3.61, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.61 implies a 0.0% chance of earnings manipulation.

Fundamentals And Technical Analysis

Xencor, Inc. is currently trading at $38.38/share, down −2.1% for the day. The company is trading at approximately 87.4% of its 52-week high of $43.90/share. The company’s stock price is up 24.5% since the last earnings report and down −2.8% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 38.35 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGM:XNCR Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −27.38 and a forward P/E multiple of −25.08.

Xencor, Inc.’s current share price also implies a price-to-book (P/B) multiple of 3.85. 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) $38.38
P/E Ratio −27.4x
P/E Ratio (Fwd) −25.1x
PEG Ratio 0.1
Total Debt / Total Capital 0.4%
Levered Free Cash Flow -$52.457 million
EV / EBITDA −18.9x

Finbox

Xencor, Inc. is a mid-cap stock with a market capitalization of $2.197 billion and a total enterprise value of $1.619 billion. The company operates in the Healthcare sector and the Biotechnology industry.

Xencor, Inc., a clinical stage biopharmaceutical company, focuses on the discovery and development of engineered monoclonal antibody and other protein therapeutics to treat severe and life threatening diseases with unmet medical needs. It develops its antibody product candidates to treat cancer and autoimmune diseases. The company’s product candidates include XmAb5871, an immune inhibitor, which has been completed Phase II clinical trial for the treatment of autoimmune diseases; AIMab7195, which is in development and commercialization stage. Its product candidates also comprise XmAb14045, a bispecific antibody which is in Phase I clinical trial for the treatment of acute myeloid leukemia; plamotamab (XmAb13676) that is in Phase I clinical trial to treat B-cell malignancies; and XmAb18087, which is in Phase I clinical trial for neuroendocrine tumors and gastrointestinal stromal tumors. In addition, the company offers Tafasitamab, an antibody drug candidate for the treatment of patients with relapsed/refractory diffuse; AMG424, a bispecific antibody that targets CD38 and CD3, which is in Phase I clinical trial for the treatment of various myeloma; and AMG509, a bispecific antibody that is in preclinical development stage to treat prostate cancer. Further, it is developing bispecific antibodies to treat various cancers, such as XmAb20717, XmAb22841, and XmAb23104 which are in preclinical Phase. Additionally, it offers XmAb24306, initial cytokine candidate which is in Phase I clinical trial. The company has collaboration and license agreement with Novartis Institutes for BioMedical Research, Inc.; MorphoSys Ag; Amgen Inc.; and Catalent Pharma Solutions LLC. Xencor, Inc. was founded in 1997 and is headquartered in Monrovia, California.

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