What's In Store For Agenus (AGEN) This Earnings Season?

Agenus Inc. (NASDAQ:AGEN) is expected to report first-quarter 2017 results later this month or early next month. In the last reported quarter, Agenus delivered a positive earnings surprise of 9.09%. However, the trailing four-quarter average negative surprise is 5.36%..

Agenus’ share price has decreased 14.4% year to date, while the Zacks classified Medical - Biomedical and Genetics industry gained 1.8%. Let’s see how things are shaping up for the company this quarter.

Factors at Play

Agenus is an immuno-oncology company focused on the discovery and development of checkpoint modulators, vaccines and adjuvants for the treatment of cancer. It earns revenues only through fees received under collaboration and license agreements.

Currently, the company is evaluating AGEN1884 in a phase I study and INCAGN01876 in a phase I/II study for the treatment of solid tumors. The company has initiated phase I study for anti-OX40 agonist antibody – INCAGN1949 – in a phase I/II study in collaboration with Incyte. Also, it plans to initiate studies on anti-PD-1 antagonist AGEN2034, in the first half of 2017. Moving ahead, Agenus expects to begin combination studies on AGEN2034 and AGEN1884 in the second half of 2017.

In its first-quarter conference call, investors are likely to remain focused on the company’s update on the initiation of combination studies on these antibodies. They are likely to focus on the advancement of additional checkpoint modulator antibodies and vaccines into the clinic in the coming quarters.

This January, Agenus entered into a clinical trial collaboration with the National Cancer Institute (NCI) to evaluate Prophage (HSPPC-96), in conjunction with Merck & Co., Inc.‘s (NYSE:MRK) PD-1 therapy, Keytruda. A phase II study will evaluate the effect of Prophage, in conjunction with Keytruda, on the overall survival rate of patients with newly diagnosed glioblastoma (ndGBM).

In Mar 2017, the company restructured its operations. This decision was taken in order to cut costs and sharpening its focus on developing key product candidates. The company plans to close its Basel site and consolidate key functions in Cambridge, U.K. and Lexington, MA, going forward. The move is anticipated to result in the elimination of 50 positions over the next six months. Furthermore, Agenus will transition or consolidate certain key management positions, with the objective of streamlining leadership and reducing costs.

In fact, this immuno-oncology company has no approved product in its portfolio. With only a few candidates in mid-stages of development, including Prophage Series vaccine and a number of QS-21 Stimulon-containing vaccine candidates, it is still a few years away from bringing a product to market.

Earnings Whispers

Our proven model does not conclusively show that Agenus is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, this is not the case here as you will see below.

Zacks ESP: Agenus has an Earnings ESP of 0.00%, since the Most Accurate estimate is in line with the Zacks Consensus Estimate of a loss of 32 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Agenus currently carries a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.

Note that 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.

Stocks That Warrants a Look

Here are some health care stocks that you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat this quarter.

Amgen Inc. (NASDAQ:AMGN) has an Earnings ESP of +2.33% and a Zacks Rank #3. The company is scheduled to release results on Apr 26. You can see the complete list of today’s Zacks #1 Rank stocks here.

Gilead Sciences, Inc. (NASDAQ:GILD) has an Earnings ESP of +2.77% and a Zacks Rank #3. The company is scheduled to release results on May 2.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple (NASDAQ:AAPL) sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>