It has been about a month since the last earnings report for CRISPR Therapeutics AG (CRSP). Shares have added about 0.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CRISPR Therapeutics AG due for a pullback? 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.
Q3 Earnings Top, Sales Lag Estimates
CRISPR Therapeutics reported a net loss per share of $2.24 in third-quarter 2022, narrower than the Zacks Consensus Estimate and our estimate of a loss of $2.30 and $2.44. The company had posted a loss of $1.67 per share in the year-ago period.
CRISPR Therapeutics’ total revenues, comprising grants and collaboration revenues, came in at $0.1 million in the third quarter compared with $0.82 million reported in the year-ago period. Revenues substantially missed the Zacks Consensus Estimate and our estimate of $4.0 million and $6.0 million, respectively.
Quarter in Detail
For the reported quarter, research and development expenses were $116.6 million, up 40% from the year-ago figure to support the development of pipeline programs and costs related to the increased headcounts to support the developmental programs.
General and administrative expenses rose 14% year over year to $27 million.
Collaboration expenses for the third quarter reached $38.9 million, up 73% year-over-year. The rise was driven by increased pre-commercial and manufacturing costs associated with CRISPR’s hemoglobinopathies program under the Vertex collaboration.
As of Sep 30, 2022, the company had cash, cash equivalents and marketable securities of $1.97 billion compared with $2.07 billion as of Jun 30, 2022.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
Currently, CRISPR Therapeutics AG has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, 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
CRISPR Therapeutics AG 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
CRISPR Therapeutics AG belongs to the Zacks Medical – Biomedical and Genetics industry. Another stock from the same industry, Vertex Pharmaceuticals (VRTX), has gained 2.1% over the past month. More than a month has passed since the company reported results for the quarter ended September 2022.
Vertex reported revenues of $2.33 billion in the last reported quarter, representing a year-over-year change of +17.7%. EPS of $4.01 for the same period compares with $3.56 a year ago.
For the current quarter, Vertex is expected to post earnings of $3.55 per share, indicating a change of +5.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Vertex has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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