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Why Is Spectrum Pharma (SPPI) Up 23.9% Since Last Earnings Report?

A month has gone by since the last earnings report for Spectrum Pharmaceuticals (SPPI). Shares have added about 23.9% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Spectrum Pharma due for a pullback? 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 drivers.

Spectrum Pharmaceuticals’ Loss Narrows in Q3

Spectrum Pharmaceuticals incurred adjusted loss of 22 cents per share in the third quarter of 2019. The loss was narrower than the Zacks Consensus Estimate of a loss of 26 cents and the year-ago quarter loss of 24 cents.

The company did not record any revenues during the quarter. The Zacks Consensus Estimate for revenues was pegged at $1 million.

Quarter in Detail

Adjusted research & development expenses were $16.1 million, up 9.5% from the year-ago quarter.

Adjusted selling, general and administrative expenses declined 10.8% to $9.9 million.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 18.75% due to these changes.

VGM Scores

Currently, Spectrum Pharma has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision has been net zero. It comes with little surprise Spectrum Pharma has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.


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