A month has gone by since the last earnings report for Blueprint Medicines (BPMC). Shares have added about 0.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Blueprint Medicines 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 catalysts.
Blueprint Medicines’ Q2 Earnings Miss, Revenues Beat
Blueprint Medicines incurred a loss of $2.28 per share in the second quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $2.08 and the year-ago quarter’s loss of $2.04.
Total revenues of $8.3 million grew 63.3% year over year and surpassed the Zacks Consensus Estimate of $8 million. The top line includes $5.7 million of net product revenues from sales of Ayvakit and $2.6 million in collaboration revenues under the agreements with CStone, Roche and Clementia.
Quarter in Detail
Research and development expenses were $91.1 million, up 4.6% from the year-ago quarter’s figure, mainly due to increased personnel costs.
Selling, general and administrative expenses were $42.2 million, up 92.4% year over year on account of higher personnel fees, infrastructure costs and other commercial costs.
Blueprint Medicines had cash, cash equivalents and investments worth $650.3 million as of Jun 30, 2020, lower than $750.4 million as of Mar 31, 2019.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 343.3% due to these changes.
VGM Scores
At this time, Blueprint Medicines has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, 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 upward for the stock, and the magnitude of these revisions looks promising. Notably, Blueprint Medicines has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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