Yahoo Finance Why Is CRISPR Therapeutics (CRSP) Up 12% Since Last Earnings Report?
A month has gone by since the last earnings report for CRISPR Therapeutics AG (CRSP). Shares have added about 12% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CRISPR Therapeutics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Q1 Loss Narrower-Than-Expected, Sales Miss
CRISPR Therapeutics reported a loss of $1.43 per share in the first quarter of 2024, which was narrower than the Zacks Consensus Estimate of a loss of $1.63. In the year-ago period, the company had incurred a loss of 67 cents per share.
The company’s total revenues, generated entirely from grant revenues, were $0.5 million in the first quarter. The reported figures significantly missed the Zacks Consensus Estimate of $8.3 million. In the year-ago quarter, the company generated revenues worth $100 million, which was in its entirety received as an upfront payment from Vertex.
Quarter in Detail
In the reported quarter, research and development expenses fell 24% year over year to $76.2 million, owing to reduced variable external research and manufacturing costs.
Also, general and administrative expenses declined 20% to $18.0 million due to a fall in employee-related and stock-based compensation expenses.
Collaboration expenses in the quarter reached $47.0 million, up 11% year over year. The uptick was primarily attributable to commercial and manufacturing costs.
As of Mar 31, 2024, the company had cash, cash equivalents, marketable securities and accounts receivables of $2.1 billion compared with $1.7 billion as of Dec 31, 2023. This surge in cash balance was mainly driven by proceeds from February 2024 registered direct offering and a $200-million milestone payment received from Vertex in connection with the approval of Casgevy.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 18.14% due to these changes.
VGM Scores
At this time, CRISPR Therapeutics has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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. Notably, CRISPR 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
CRISPR Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Biogen Inc. (BIIB), has gained 4.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2024.
Biogen reported revenues of $2.29 billion in the last reported quarter, representing a year-over-year change of -7%. EPS of $3.67 for the same period compares with $3.40 a year ago.
For the current quarter, Biogen is expected to post earnings of $3.98 per share, indicating a change of -1% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Biogen. Also, the stock has a VGM Score of B.
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CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report
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