Earnings preview: Advaxis stock treading near an all-time low ahead of Q2 results

Late-stage biotech firm Advaxis, Inc. (NASDAQ: ADXS) is scheduled to report second-quarter financial results on June 10, Monday, after the closing bell. Analysts expect the company to report a loss of $1.20 per share, on revenues of $0.17 million.

During the same quarter last year, the biotech firm had reported a wider loss of $4.05 per share, on higher earnings of $1.75 million.  In the past four quarters, Advaxis has twice missed earnings estimates.

As the company does not have any commercial products yet, it does not have any significant product revenues. The clinical trials and drug development costs are funded through various public and private offerings of its common stock, clinical collaborations, option and warrant exercises, and interest income.

The company, which focuses on discovery, development, and commercialization of immunotherapy products, has seen its stock plunge almost 90% over the past 52 weeks. The stock has declined 43% in the year-to-date period.

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Much of this decline was contributed by the company’s decision to go ahead with a one-for-fifteen reverse stock split of its common stock in March, a move intended at maintaining stock value.

Announcement of the reverse stock split had sent the stock tumbling 20% on March 28. The move slashed the number of shares outstanding to just about 5.5 million from 82.6 million.

The stock price plunging at a rapid pace is of significant risk to the company as it represents a good amount of its financial funding.

Meanwhile, analysts are quite bullish about the stock, which has a 12-month average price target of $5.15, suggesting a 107% upside from the last close.

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