A month has gone by since the last earnings report for CRISPR Therapeutics AG (CRSP). Shares have lost about 12.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is CRISPR Therapeutics AG 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.
CRISPR Therapeutics Q4 Earnings Miss, Revenues Fall Y/Y
CRISPR Therapeutics reported fourth-quarter 2020 loss per share of $1.50, wider than the Zacks Consensus Estimate of a loss of $1.23. However, the company had reported earnings of 51 cents per share in the year-ago quarter.
Collaboration revenues comprising the company’s total revenues came in at $0.2 million in the fourth quarter, reflecting a significant decline year-over-year. In the year-ago quarter, the company had recorded revenues of $77 million in connection with the sale of certain licenses under the collaboration with Vertex. The top line also substantially missed the Zacks Consensus Estimate of $5 million.
Quarter in Detail
In the reported quarter, research and development expenses were $82.4 million, up 68.8% from the year-ago figure due to increased headcount and development costs for pipeline development.
General and administrative expenses also surged 49.1% year over year to $25.8 million due to higher headcount related costs.
As of Dec 31, 2020, the company had cash, cash equivalents and marketable securities of $1.7 billion compared with $1.4 billion as at Sep 30, 2020.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month. The consensus estimate has shifted -14.17% due to these changes.
VGM Scores
Currently, CRISPR Therapeutics AG has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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. It’s no surprise CRISPR Therapeutics AG has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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