It has been about a month since the last earnings report for Global Blood Therapeutics . Shares have lost about 7.5% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Global Blood's Q2 Earnings Beat, Revenues Rise Y/Y
Global Blood incurred a loss of $1.12 per share in second-quarter 2021, narrower than the Zacks Consensus Estimate of a loss of $1.17. In the year-ago quarter, the company had reported a loss of 86 cents per share.
The company’s revenues of $47.6 million, comprising solely of Oxbryta sales, also beat the Zacks Consensus Estimate of $44 million. Global Blood had generated $31.5 million in product sales in the year-ago quarter.
Quarter in Details
Oxbryta sales increased 22% sequentially in the second quarter, owing to higher patient demand. The company recorded around 925 new prescriptions of Oxbryta in the second quarter despite the ongoing COVID-19 pandemic in the United States during the same time.
Research and development expenses in the reported quarter were $51.8 million, up 51.9% year over year, primarily attributable to higher external costs related to the company’s preclinical programs.
Selling, general and administrative expenses were $61.1 million in the reported quarter, up 24.4% year over year due to higher employee-related costs, and increased professional and consulting services cost.
As of Jun 30, 2021, Global Blood had cash, cash equivalents and marketable securities worth $437.4 million compared with $482 million as of Mar 31, 2021.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
At this time, Global Blood has a subpar Growth Score of D, a grade with the same score on the momentum front. 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 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, Global Blood has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Global Blood (GBT) Down 7.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Global Blood Therapeutics . Shares have lost about 7.5% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Global Blood's Q2 Earnings Beat, Revenues Rise Y/Y
Global Blood incurred a loss of $1.12 per share in second-quarter 2021, narrower than the Zacks Consensus Estimate of a loss of $1.17. In the year-ago quarter, the company had reported a loss of 86 cents per share.
The company’s revenues of $47.6 million, comprising solely of Oxbryta sales, also beat the Zacks Consensus Estimate of $44 million. Global Blood had generated $31.5 million in product sales in the year-ago quarter.
Quarter in Details
Oxbryta sales increased 22% sequentially in the second quarter, owing to higher patient demand. The company recorded around 925 new prescriptions of Oxbryta in the second quarter despite the ongoing COVID-19 pandemic in the United States during the same time.
Research and development expenses in the reported quarter were $51.8 million, up 51.9% year over year, primarily attributable to higher external costs related to the company’s preclinical programs.
Selling, general and administrative expenses were $61.1 million in the reported quarter, up 24.4% year over year due to higher employee-related costs, and increased professional and consulting services cost.
As of Jun 30, 2021, Global Blood had cash, cash equivalents and marketable securities worth $437.4 million compared with $482 million as of Mar 31, 2021.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
At this time, Global Blood has a subpar Growth Score of D, a grade with the same score on the momentum front. 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 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, Global Blood has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.