Why Is Intrexon (XON) Down 4.1% Since the Last Earnings Report?

It has been about a month since the last earnings report for Intrexon Corporation XON. Shares have lost about 4.1% in that time frame, underperforming the market.

Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Intrexon Q1 Loss Wider than Expected, Revenues Beat

Intrexon reported loss per share of $0.26 in the first quarter of 2017, which was wider than the Zacks Consensus Estimate loss of $0.23.
Total revenue came in at $53.7 million in the quarter, up 23.7% year over year. Reported revenues surpassed the Zacks Consensus Estimate of $49 million.

Quarter in Detail

Intrexon's revenues primarily consist of collaboration and licensing revenues as well as product and service revenues.

Collaboration and licensing revenues increased 37.4% to $33.1 million. While product revenues came in at $8.1 million, down 5% from the year-ago period, service revenues amounted to $12 million, up 12.8% year over year.

Intrexon follows a business model under which it commercializes its technologies through exclusive channel collaborations ECC, licensing agreements and joint ventures with collaborators that have market and product development expertise as well as sales and marketing capabilities to bring new as well as improved products and processes to market. Such agreements provide the company with funds in the form of technology access fees along with milestones and other payments.

Additionally, the company is also developing several candidates in partnership with other companies.

In fact, the FDA granted Fast Track designation to Fibrocell Science, Inc. for FCX-007 for the treatment of recessive dystrophic epidermolysis bullosa in Jan 2017. FCX-007 is being developed by Fibrocell in collaboration with Intrexon.

In May 2017, Intrexon's collaborator, ZIOPHARM Oncology, Inc. announced that the FDA accepted investigator-initiated Investigational New Drug IND application for a phase I study infusing Intrexon's CD33-specific chimeric antigen receptor T cell (CAR-T) and therapy, for the treatment of relapsed or refractory acute myeloid leukemia (AML). ZIOPHARM 's immuno-oncology programs, in collaboration with Intrexon include CAR-T and other adoptive cell-based approaches that use non-viral gene transfer methods for broad scalability.

In Mar 2017, Intrexon announced the formation of Precigen, Inc., a wholly-owned subsidiary of the company as part of an ongoing evaluation of structural alternatives concerning its business in healthcare. Moving ahead, the company plans to consolidate all health-related assets under this new corporate entity as it considers potential strategic options to enhance shareholder value.

In Jan 2017, Intrexon had inked deal to acquire GenVec, Inc. and announced plans to develop a next generation adenoviral (AdV) platform with significantly higher payload capacity compared to current systems. In fact, it plans to combine and expand upon GenVec's expertise in adenoviral vectors and cGMP drug product manufacturing to enhance its broad gene transfer capabilities that include multiple viral and non-viral platforms.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.

Intrexon Corporation Price and Consensus

Intrexon Corporation Price and Consensus | Intrexon Corporation Quote

VGM Scores

At this time, the stock has a subpar Growth Score of 'D', though it is lagging a bit on the momentum front with an 'F'. Following the exact same course, the stock was allocated also 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.

Our style scores indicate investors will probably be better served looking elsewhere.

Outlook

The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.