A month has gone by since the last earnings report for Allogene Therapeutics (ALLO). Shares have lost about 11.1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Allogene Therapeutics due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Allogene Therapeutics, Inc. before we dive into how investors and analysts have reacted as of late.
Narrower Than Expected Loss in Q2, Nil Sales
Allogene incurred a second-quarter 2026 loss of 13 cents per share, narrower than the Zacks Consensus Estimate of a loss of 16 cents. Lower R&D spending supported the narrower loss. In the year-ago period, the company reported a loss of 23 cents.
The company recorded $4.6 million in collaboration revenues from related parties. It did not record any sales in the year-ago period.
Operating Costs
R&D expenses were $30.7 million, down 23.5% year over year. In contrast, general and administrative (G&A) expenses rose 45.9% to $20.8 million.
Cash Position Extends Runway Into 2029
As of June 30, 2026, cash, cash equivalents and investments totaled $423.6 million compared to $266.9 million in the previous quarter. This uptick was due to the completion of a public offering in April that generated gross proceeds of $200.4 million. Based on its June-end liquidity, management expects a cash runway into 2029.
The company maintained operating expenses guidance for full-year 2026 at about $225 million, including non-cash stock-based compensation expense of nearly $35 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 22.89% due to these changes.
VGM Scores
At this time, Allogene 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 score of F on the value side, putting it in the lowest quintile for value investors.
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 upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Allogene 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
Allogene Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Rocket Pharmaceuticals (RCKT), has gained 4.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Rocket Pharmaceuticals reported revenues of $0 million in the last reported quarter, representing a year-over-year change of 0%. EPS of -$0.15 for the same period compares with -$0.59 a year ago.
Rocket Pharmaceuticals is expected to post a loss of $0.38 per share for the current quarter, representing a year-over-year change of +15.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +5.9%.
Rocket Pharmaceuticals has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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This article originally published on Zacks Investment Research (zacks.com).