Yahoo Finance Why Is Fate Therapeutics (FATE) Down 8.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Fate Therapeutics (FATE). Shares have lost about 8.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Fate Therapeutics due for a breakout? 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 catalysts.
FATE's Q4 Loss Narrower Than Expected, Pipeline in Focus
Fate reported a loss of 58 cents per share in the fourth quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of 86 cents and the year-ago loss of 72 cents.
The loss narrowed year-over-year due to higher revenues.
The company earned collaboration revenues of $44 million in the fourth quarter, which easily surpassed the Zacks Consensus Estimate of $20 million and were up from $17 million reported in the year-ago quarter. Revenues are primarily derived from Fate’s collaborations with Janssen, a unit of Johnson & Johnson and Ono Pharmaceutical.
R&D expenses surged to $87.2 million from $69.5 million in the year-ago quarter.
G&A expenses jumped to $21.6 million from $16.9 million in the year-ago quarter.
Cash, cash equivalents and investments at the end of the fourth quarter were $441.2 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 24.93% due to these changes.
VGM Scores
Currently, Fate Therapeutics has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. 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, Fate 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
Fate Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Apellis Pharmaceuticals, Inc. (APLS), has gained 3.4% over the past month. More than a month has passed since the company reported results for the quarter ended December 2022.
Apellis Pharmaceuticals, Inc. reported revenues of $22.66 million in the last reported quarter, representing a year-over-year change of -62.4%. EPS of -$1.50 for the same period compares with -$1.61 a year ago.
Apellis Pharmaceuticals, Inc. is expected to post a loss of $1.40 per share for the current quarter, representing a year-over-year change of +1.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Apellis Pharmaceuticals, Inc. Also, the stock has a VGM Score of F.
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Fate Therapeutics, Inc. (FATE) : Free Stock Analysis Report
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