It has been about a month since the last earnings report for SpringWorks Therapeutics (SWTX). Shares have added about 14.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is SpringWorks Therapeutics 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 catalysts.

SpringWorks' Q3 Loss Narrower Than Expected, Revenues Miss Mark

SpringWorks incurred a loss of 72 cents per share in the third quarter of 2024, which was narrower than the Zacks Consensus Estimate of a loss of 76 cents. The company had reported a loss of $1.27 per share in the year-ago quarter.

In the third quarter, total revenues were $49.3 million, which missed the Zacks Consensus Estimate of $54 million. Total revenues comprised net product sales of Ogsiveo. The company did not generate any revenues in the year-ago quarter.

Quarter in Detail

Net product revenues from Ogsiveo increased almost 23% on a sequential basis in the third quarter, driven by a strong commercial launch and high demand for the drug.

Research and development expenses totaled $42.3 million in the third quarter, up 12.8% from the year-ago quarter’s level, owing to higher costs related to drug manufacturing and increased expenses related to ongoing clinical studies and consulting costs.

Selling, general and administrative expenses totaled $61.6 million, up around 32.5% year over year due to higher costs to support the launch of mirdametinib in the United States upon potential approval.

As of Sept. 30, 2024, SpringWorks had cash, cash equivalents and marketable securities worth $498.1 million compared with $521.9 million as of June 30, 2024. Management expects this cash balance to fund the company through profitability, which is expected in the first half of 2026.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

At this time, SpringWorks Therapeutics has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

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

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, SpringWorks Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

SpringWorks Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Exelixis (EXEL), has gained 0.7% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.

Exelixis reported revenues of $539.54 million in the last reported quarter, representing a year-over-year change of +14.3%. EPS of $0.47 for the same period compares with $0.10 a year ago.

Exelixis is expected to post earnings of $0.46 per share for the current quarter, representing a year-over-year change of +39.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +1%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Exelixis. Also, the stock has a VGM Score of A.

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