It has been about a month since the last earnings report for Global Blood Therapeutics (GBT). Shares have lost about 7.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Global Blood 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.
Global Blood Q4 Earnings Miss, Revenues Beat Estimates
Global Bloodincurred a loss of $1 per share in fourth-quarter 2020, narrower than a loss of $1.59 in the year-ago quarter. However, the reported loss was wider than the Zacks Consensus Estimate of a loss of 97 cents.
The company’s revenues of $41.3 million, comprising solely of Oxbryta sales, beat the Zacks Consensus Estimate of $39 million. The company generated $2.1 million in product sales in the year-ago quarter.
Quarter in Details
Importantly, the company recorded around 950 new prescriptions of Oxbryta in the fourth quarter, despite an increase in COVID-19 cases in the United States during the same time.
Research and development expenses in the fourth quarter were $41.1 million, down 36.7% year over year, primarily attributable to lower expense for capitalization of Oxbryta manufacturing costs to inventory.
Selling, general and administrative expenses were $58.6 million in the reported quarter, up 31.4% year over year due to higher employee-related costs and increased professional and consulting services cost.
As of Dec 31, 2020, Global Blood had cash, cash equivalents and marketable securities worth $560.9 million compared with $535.2 million as of 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 -6.49% due to these changes.
VGM Scores
Currently, Global Blood 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 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 downward for the stock, and the magnitude of these revisions indicates a downward shift. It’s no surprise Global Blood has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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