Is ImmunoGen (IMGN) Poised For A Beat This Earnings Season?

ImmunoGen, Inc. (NASDAQ:IMGN) is scheduled to report first-quarter 2017 results on May 5, before the opening bell. ImmunoGen’s track record is disappointing as the company missed expectations in all of the last four quarters. Overall, the company had an average negative surprise of 17.85%.

However, ImmunoGen’s shares outperformed the Zacks classified Medical-Drugs industry by gaining 114.7% so far this year. The industry witnessed an increase of 4.9% over the same period.



In the last reported quarter, ImmunoGen posted a negative surprise of 2.63%. Let’s see how things are shaping up for this quarter.

Factors at Play

ImmunoGen is a development-stage biotech company that focuses on the development of targeted anticancer therapeutics using its antibody-drug conjugate (ADC) technology. At the previous conference call, the company revealed that it expects first-quarter revenues in the range of $70–$75 million, including $28 million of expected upfront and milestone fees from partners.

Meanwhile, operating expenses are projected in the range of $175 million and $180 million for 2017.

Given that ImmunoGen does not have any approved product in its portfolio yet, investor focus should remain on the company’s progress with its lead pipeline candidate, mirvetuximab soravtansine, and other programs.

ImmunoGen made significant progress with regard to mirvetuximab soravtansine. The candidate is currently in a phase III study (FORWARD I) as a single-agent therapy for the treatment of patients with platinum-resistant ovarian cancer. Data from the study are anticipated in 2019.

Meanwhile, combination regimens with mirvetuximab soravtansine in ovarian cancer are in the phase Ib/II FORWARD II study, which aim to expand the eligible patient population. ImmunoGen expects to report initial data from the FORWARD II study in the second quarter of 2017.

Apart from mirvetuximab soravtansine, ImmunoGen is evaluating pipeline candidate IMGN779 in a phase I study for the treatment of acute myeloid leukemia (AML). Moreover, the company is planning to file an investigational new drug application for its preclinical candidate IMGN632 in the second half of 2017 for the treatment of patients with hematological malignancies, including AML.

Earnings Whispers

Our proven model shows that ImmunoGen is likely to beat earnings estimates this quarterbecause it has the right combination of two key ingredients.

Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate (loss of 33 cents) and the Zacks Consensus Estimate (loss of 36 cents), stands at +8.33%. This is a meaningful indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ImmunoGen currently has a Zacks Rank #3 (Hold). Please note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happenhave a significantly higher chance of beating on earnings.

Cconverely, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

The combination of ImmunoGen’s favorable Zacks Rank and a positive Earnings ESP makes us reasonably confident of an earnings beat.

Other Stocks That Warrant a Look

ImmunoGenis not the only company looking up this earnings season. Here are some health care stocks that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter.

Proteostasis Therapeutics, Inc. (NASDAQ:PTI) , which is expected to release results on May 12, has an Earnings ESP of +5.17% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) is scheduled to release results on May 4. The company has an Earnings ESP of +0.59% and a Zacks Rank #3.

Conatus Pharmaceuticals Inc. (NASDAQ:CNAT) is scheduled to release results on May 4. The company has an Earnings ESP of +57.14% and a Zacks Rank #3.

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