A month has gone by since the last earnings report for Reata Pharmaceuticals, Inc. (RETA). Shares have added about 3.9% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Reata Pharmaceuticals, Inc. due for a pullback? 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.
Reata Q4 Earnings and Revenues Beat Estimates
Reata reported fourth-quarter 2021 loss of $2.35 per share, wider than the Zacks Consensus Estimate of a loss of $2.31.
However, the above loss included stock-based compensation and a non-cash interest expense. Adjusted loss for the quarter was $1.59 per share, also wider than the loss of $1.25 per share recorded in the year-ago period.
Total revenues, comprising collaboration revenues, were $0.9 million compared with $3.2 million in the year-ago quarter. Revenues were almost in line with the Zacks Consensus Estimate of $1 million.
Operating Expenses & Cash Position
Adjusted research and development expenses rose 8.6% year over year to $35.5 million.
Adjusted general and administrative expenses were $21.4 million, up 74% from the year-ago period.
The company had cash and cash equivalents of $590.3 million as of Dec 31, 2021, compared with $713.2 million as of Sep 30, 2021. The company expects its cash resources to fund operations through 2024-end, which was earlier expected through mid-2024.
Full-Year Results
For full-year 2021, Reata generated total revenues of $11.5 million compared with $9 million recorded in 2020.
For 2021, the company reported a loss of $8.19 per share compared with net loss of $7.35 per share in 2020. Adjusted loss came was $5.34 per share compared with net loss of $4.70 per share in 2020.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
At this time, Reata Pharmaceuticals, Inc. has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. 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 downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Reata Pharmaceuticals, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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