A month has gone by since the last earnings report for Editas Medicine (EDIT). Shares have lost about 20.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Editas due for a breakout? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Editas’ (EDIT) Q1 Loss Narrows, Revenues Beat Estimates
Editas incurred a loss of 74 cents per share in the first quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of 81 cents. The company had reported a loss of 86 cents per share in the year-ago quarter.
Collaboration, and other research and development revenues, comprising the company’s top line, came in at $6.8 million in the reported quarter compared with $6.5 million in the year-ago quarter. The top line also beat the Zacks Consensus Estimate of $5 million.
Quarter in Detail
In the first quarter of 2022, research and development expenses were $38 million, down 9.3% from the year-ago figure. General and administrative expenses decreased 8.8% to $19.5 million owing to lower professional service expenses.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, Editas has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, 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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Editas 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
Editas belongs to the Zacks Medical – Biomedical and Genetics industry. Another stock from the same industry, Amgen (AMGN), has gained 5.9% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Amgen reported revenues of $6.24 billion in the last reported quarter, representing a year-over-year change of +5.7%. EPS of $4.25 for the same period compares with $3.70 a year ago.
Amgen is expected to post earnings of $4.44 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 -0.4%.
Amgen has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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