It has been about a month since the last earnings report for Bluebird Bio (BLUE). Shares have lost about 6.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Bluebird 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 drivers.
bluebird Q1 Loss Wider Than Expected, Revenues Miss
bluebird reported an adjusted loss of $1.66 per share from continued operations for the first quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $1.26. In the year-ago quarter, BLUE posted a loss of $1.81 from continued operations.
Revenues from continued operations were $1.9 million, which missed the Zacks Consensus Estimate of $15 million. During the year-ago quarter, bluebird posted revenues of $0.9 million.
Quarter in Detail
Research and development expenses from continuing operations decreased to $77.9 million from $82.8 million a year ago.
Selling, general and administrative expenses from continuing operations were $36.1 million, down from $63.6 million in the year-ago quarter.
The decline in both the aforementioned categories of expenses was owing to the restructuring initiatives undertaken by bluebird during the quarter, thus leading to a reduction in employee-related expenses.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -17.38% due to these changes.
VGM Scores
At this time, Bluebird has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, 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 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, Bluebird 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
Bluebird is part of the Zacks Medical – Biomedical and Genetics industry. Over the past month, Blueprint Medicines (BPMC), a stock from the same industry, has gained 16.6%. The company reported its results for the quarter ended March 2022 more than a month ago.
Blueprint Medicines reported revenues of $62.73 million in the last reported quarter, representing a year-over-year change of +190.7%. EPS of -$1.79 for the same period compares with -$1.72 a year ago.
For the current quarter, Blueprint Medicines is expected to post a loss of $2.21 per share, indicating a change of -18.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.6% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Blueprint Medicines. Also, the stock has a VGM Score of F.
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