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Why Is Editas (EDIT) Up 28.7% Since Last Earnings Report?

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It has been about a month since the last earnings report for Editas Medicine (EDIT - Free Report) . Shares have added about 28.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Editas 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 drivers.

Editas Beats on Q3 Earnings, Amends Celgene Deal

Editas incurred a loss of 66 cents per share in the third quarter of 2019, narrower than the Zacks Consensus Estimate of 73 cents but wider than the year-ago quarter’s loss of 32 cents.

Collaboration and other research and development revenues comprising the company’s total revenues came in at $3.8 million, down 73.8% year over year. Meanwhile, sales were almost in line with the Zacks Consensus Estimate of $4million.

Editas has no approved product in its portfolio at the moment. The company generates collaboration revenues and other research and development revenues. Its collaboration revenues declined in the quarter due to lower revenues recognized under its collaboration with Allergan.

Quarter in Detail

In the reported quarter, research and development expenses were $22.7 million, up 30.5% from the year-ago period’s figure due to increased process and platform development costs.

General and administrative expenses rose 18.1% to $15.7 million due to higher professional services costs.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month. The consensus estimate has shifted 104.63% due to these changes.

VGM Scores

Currently, Editas 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 lowest 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

Editas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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