We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in the Cards for Intellia (NTLA) This Earnings Season?
Read MoreHide Full Article
With no marketed drugs, Intellia Therapeutics, Inc.’s (NTLA - Free Report) investors are likely to focus on pipeline progress when it reports fourth-quarter results.
The company’s earnings missed estimates in two of the last four quarters and beat the same twice with the average negative surprise being 10.64%. In the last reported quarter, Intellia delivered an earnings surprise of 12.96%.
Shares of Intellia have soared 392.7% in the past year compared with the industry‘s increase of 14.9%.
Factors to Note
Intellia’s top line mainly comprises revenues recognized from the progress of its pipeline under existing collaboration with Novartis (NVS - Free Report) and Regeneron (REGN - Free Report) .
The company reported $51.4 million of collaboration revenues in the first nine months of 2020, reflecting a year-over-year increase of 59.8%. However, revenues may vary from quarter to quarter as it is subject to achievement of pre-defined milestones.
In November, the company initiated its first clinical study. The early-stage study will evaluate single dose of its gene editing candidate, NTLA-2001, as potential treatment for hereditary transthyretin amyloidosis with polyneuropathy (hATTR-PN), a rare disease leading to nerve damage and cardiomyopathy. Investors will likely look for any initial data update from the study on the fourth-quarter earnings call.
The company has several other gene editing pipeline candidates in pre-clinical stage. The company plans to submit an investigational new drug application for NTLA-5001 and NTLA-2002 as potential gene editing therapies for acute myeloid leukemia and hereditary angioedema, respectively, in 2021.
Increased pre-clinical and clinical activities as well as preparation for regulatory activities are likely to have driven operating expenses during the fourth quarter.
We expect management to provide a brief update on the progress with its pre-clinical pipeline on its earnings call.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Intellia this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (loss of 48 cents) and the Zacks Consensus Estimate (loss of 57 cents) is +15.97%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Intellia carries a Zacks Rank #4 (Sell).
Here is a biotech stock that you may want to consider as our model shows that it has the right combination of elements to post an earnings beat in its upcoming release.
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
What's in the Cards for Intellia (NTLA) This Earnings Season?
With no marketed drugs, Intellia Therapeutics, Inc.’s (NTLA - Free Report) investors are likely to focus on pipeline progress when it reports fourth-quarter results.
The company’s earnings missed estimates in two of the last four quarters and beat the same twice with the average negative surprise being 10.64%. In the last reported quarter, Intellia delivered an earnings surprise of 12.96%.
Shares of Intellia have soared 392.7% in the past year compared with the industry‘s increase of 14.9%.
Factors to Note
Intellia’s top line mainly comprises revenues recognized from the progress of its pipeline under existing collaboration with Novartis (NVS - Free Report) and Regeneron (REGN - Free Report) .
The company reported $51.4 million of collaboration revenues in the first nine months of 2020, reflecting a year-over-year increase of 59.8%. However, revenues may vary from quarter to quarter as it is subject to achievement of pre-defined milestones.
In November, the company initiated its first clinical study. The early-stage study will evaluate single dose of its gene editing candidate, NTLA-2001, as potential treatment for hereditary transthyretin amyloidosis with polyneuropathy (hATTR-PN), a rare disease leading to nerve damage and cardiomyopathy. Investors will likely look for any initial data update from the study on the fourth-quarter earnings call.
The company has several other gene editing pipeline candidates in pre-clinical stage. The company plans to submit an investigational new drug application for NTLA-5001 and NTLA-2002 as potential gene editing therapies for acute myeloid leukemia and hereditary angioedema, respectively, in 2021.
Increased pre-clinical and clinical activities as well as preparation for regulatory activities are likely to have driven operating expenses during the fourth quarter.
We expect management to provide a brief update on the progress with its pre-clinical pipeline on its earnings call.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Intellia this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (loss of 48 cents) and the Zacks Consensus Estimate (loss of 57 cents) is +15.97%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Intellia carries a Zacks Rank #4 (Sell).
Intellia Therapeutics, Inc. Price and Consensus
Intellia Therapeutics, Inc. price-consensus-chart | Intellia Therapeutics, Inc. Quote
A Stock That Warrants a Look
Here is a biotech stock that you may want to consider as our model shows that it has the right combination of elements to post an earnings beat in its upcoming release.
Moderna, Inc. (MRNA - Free Report) has an Earnings ESP of +0.57% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>