NYSE$RCUS

Arcus Biosciences Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Announced fourth quarter and full year 2019 financial results and corporate updates.

Arcus Biosciences reported a net loss of $16.6 million for the fourth quarter of 2019, with collaboration and license revenue of $9.8 million. The company's cash, cash equivalents, and investments totaled $188.3 million as of December 31, 2019.

  • Advanced three molecules into randomized Phase 2 trials.
  • Entered into a clinical collaboration with Genentech to accelerate development of AB928.
  • Taiho exercised its option for zimberelimab for its territories.
  • Initiated ARC-7, a randomized Phase 2 clinical trial of AB154 for the treatment of non-small cell lung cancer (NSCLC).

Headline financials

Total Revenue

$9.75M

Previous: $1.56M+524.2%
EPS (adj)

-$0.38

Previous: -$0.28-35.7%
Capital Expenditures

$196K

No prior period
Free Cash Flow

-$9.67M

No prior period
Net Income

-$16.6M

No prior period
Operating Income

-$17.5M

No prior period
Gross Profit

-$10.9M

No prior period
Cash & Equivalents

$188M

No prior period
Total Assets

$203M

No prior period
Stock-Based Comp

$2.44M

No prior period

Revenue & EPS history

Arcus Biosciences · Revenue · Quarterly

$9.75M

Q4 2019+524.2%vs Q4 2018
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Revenue by segment

Arcus Biosciences · $10M total across 1 segment · Q3 2023

  • Other collaboration
    $10M+1.6%

Forward guidance

Arcus Biosciences anticipates several corporate milestones and presentations.

Tailwinds

  • Initiate ARC-6, a Phase 1b/2 platform trial to evaluate the efficacy and safety of AB928 in multiple rationally selected combinations for the treatment of mCRPC in the first half of 2020.
  • Preliminary Phase 2 randomization data from the two clinical collaborations with Genentech with AB928 in CRC and PDAC expected in the fourth quarter of 2020.
  • Preliminary Phase 2 randomization data with AB154 from the ARC-7 trial in first-line NSCLC expected in the fourth quarter of 2020.
  • Preliminary Phase 1b expansion data with AB928 in multiple tumor types expected starting in mid-2020.
  • Phase 1a dose-escalation data in the ARC-8 trial evaluating AB680 in combination with zimberelimab and gemcitabine/nab-paclitaxel in patients with PDAC, anticipated starting in mid-2020; Phase 1b expansion cohort anticipated to start in mid-2020

Headwinds

  • Uncertainty associated with pharmaceutical product development and clinical trials
  • Delays in clinical trials due to difficulties or delays in the regulatory process
  • Difficulties enrolling subjects or manufacturing or supplying product for such clinical trials
  • Emergence of adverse events or other undesirable side effects
  • Changes in the competitive landscape for our programs

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

+2.4%

Avg return

Earnings day

+3.6%

Avg return

5 days after

+6.7%

Avg return

30 days after

59%

19 / 32 earnings

Positive

+19.2%

Q4 2021

Best reaction

-7.9%

Q1 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%-2.6%-5.6%
Q4 2025-4.0%+10.7%+0.0%
Q3 2025-1.1%+2.7%+28.9%
Q1 2025-1.2%+8.4%+22.8%
Q4 2024-1.0%-7.3%-18.4%
Q3 2024+7.7%+16.1%+13.1%
Q2 2024+11.5%+11.7%+12.3%
Q1 2024+3.8%+10.6%-0.4%
Q4 2023+18.5%+18.4%-1.0%
Q3 2023+2.8%-13.0%+0.4%
Q2 2023-3.0%-4.3%+18.3%
Q1 2023-5.2%-6.9%+9.0%
Q4 2022-4.0%+0.6%-3.7%
Q3 2022-2.2%-7.9%+43.2%
Q2 2022+6.0%+7.9%-2.1%
Q1 2022+11.9%-9.7%+10.1%
Q4 2021+19.2%+24.6%+20.4%
Q3 2021+11.4%+9.1%+26.5%
Q2 2021-7.3%-2.5%+13.7%
Q1 2021-7.9%-11.7%-23.4%
Q4 2020+2.9%+10.3%-1.7%
Q3 2020-7.1%+3.8%+33.1%
Q2 2020+2.3%+8.1%-1.1%
Q1 2020-0.7%+11.4%+11.3%
Q4 2019+7.1%-2.6%-19.8%
Q3 2019+1.6%-6.3%-3.2%
Q2 2019+1.8%+10.3%+18.2%
Q1 2019+4.9%+9.1%-15.5%
Q4 2018-6.8%+11.6%-3.7%
Q3 2018+8.9%-1.1%+8.0%
Q2 2018+2.2%+7.5%+19.0%
Q1 2018+2.9%-1.1%+6.9%
Q4 2017
Q3 2017
Q2 2017
Q1 2017

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