Why Is Allogene Therapeutics (ALLO) Down 12.2% Since Last Earnings Report?

A month has gone by since the last earnings report for Allogene Therapeutics (ALLO). Shares have lost about 12.2% 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 its 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 Q1, Nil SalesAllogene incurred a first-quarter 2026 loss of 18 cents per share, narrower than the Zacks Consensus Estimate of a loss of 19 cents. In the year-ago period, the company reported a loss of 28 cents.The company did not report any sales during the quarter, as it lacks a marketed product in its portfolio.Quarter in DetailResearch & development (R&D) expenses totaled $32 million, down 36% from the year-ago quarter’s level.General and administrative (G&A) expenses declined 6% to $14.1 million.As of March 31, 2026, Allogene had $266.9 million in cash and cash equivalents compared with $258.3 million in the previous quarter. After the company completed a public offering last month that generated gross proceeds of $200.4 million, management expects the existing cash runway to extend into the first quarter of 2029.Raises 2026 Expense ViewAllogene now anticipates full-year operating expenses of around $225 million (previously $210 million), including non-cash stock-based compensation expense of nearly $35 million (unchanged).Cash burn for the full year is now expected to be around $165 million (previously: $150 million).How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.The consensus estimate has shifted 5.75% due to these changes.VGM ScoresAt this time, Allogene Therapeutics has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a score of F on the value side, putting it in the fifth 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.OutlookEstimates 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 PlayerAllogene Therapeutics is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Recursion Pharmaceuticals (RXRX), a stock from the same industry, has gained 3.6%. The company reported its results for the quarter ended March 2026 more than a month ago.Recursion Pharmaceuticals reported revenues of $6.47 million in the last reported quarter, representing a year-over-year change of -56.1%. EPS of -$0.22 for the same period compares with -$0.50 a year ago.For the current quarter, Recursion Pharmaceuticals is expected to post a loss of $0.25 per share, indicating a change of +39% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Recursion Pharmaceuticals. Also, the stock has a VGM Score of C.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks