AVEO Pharmaceuticals Earnings: Here’s Why the Stock is Falling Now

AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 7%.

AVEO Pharmaceuticals, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.62 in the quarter versus EPS of $-0.68 in the year-earlier quarter.

Revenue: Decreased 82.98% to $320,000 from the year-earlier quarter.

Actual vs. Wall St. Expectations: AVEO Pharmaceuticals, Inc. reported adjusted EPS loss of $0.62 per share. By that measure, the company missed the mean analyst estimate of $-0.56. It missed the average revenue estimate of $4.3 million.

Quoting Management: “We are moving forward as an organization and are firmly focused on executing our revised business strategy,” said Tuan Ha-Ngoc, president and chief executive officer of AVEO. “We continue to advance our programs in clinical development, including tivozanib in colorectal and breast cancer, which are currently in Phase 2 studies. Additionally, we are moving forward with AV-203, our ERBB3 inhibitory antibody candidate, which is currently in Phase 1 development. While the recent setback related to the tivozanib Complete Response Letter and the company’s strategic restructuring was challenging, we remain confident about the company’s future prospects and we will continue to work toward our goal of bringing clinically meaningful treatments to patients with cancer.”

Key Stats (on next page)…

Revenue was the same at $320,000 as the previous quarter. EPS increased to $-0.62 in the quarter versus EPS of $-0.69 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0.59 to a loss $0.47. For the current year, the average estimate has moved up from a loss of $2.35 to a loss of $2.01 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)