AbCellera Biologics Inc. (ABCL) shares rallied 7.1% in the last trading session to close at $6.03. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6.4% gain over the past four weeks.
Last week, the company announced a preclinical research collaboration deal with Jazz Pharmaceuticals to discover and develop next-generation T-cell-engaging (TCE) multispecific antibodies for gastrointestinal (GI) cancers and other solid tumors. Per the deal, Jazz is liable to make total upfront payments of $56 million to AbCellera tied to the first two research programs. An additional $28 million payment will become due upon initiation of the third program. For each program that Jazz chooses to advance, AbCellera will be eligible to receive up to $792 million in option fees and development, regulatory and commercial milestone payments. This might have driven the recent share price rally.
This company is expected to post quarterly loss of $0.17 per share in its upcoming report, which represents a year-over-year change of -41.7%. Revenues are expected to be $7.6 million, down 55.5% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For ABCELLERA BIOLG, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ABCL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
ABCELLERA BIOLG is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, BioMarin Pharmaceutical (BMRN), finished the last trading session 1.5% higher at $57.33. BMRN has returned 6.9% over the past month.
BioMarin's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.96. Compared to the company's year-ago EPS, this represents a change of -33.3%. BioMarin currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).