We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Why Is Editas (EDIT) Down 9.6% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Editas Medicine (EDIT - Free Report) . Shares have lost about 9.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Editas 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 drivers.
Editas Misses on Q4 Earnings, Beats on Revenues
Editasincurred a loss of $1 per share in the fourth quarter of 2020, which was wider than the Zacks Consensus Estimate of a loss of 82 cents per share and also the year-ago quarter’s loss of 74 cents.
Collaboration, and other research and development revenues comprising the company’s top line came in at $11.4 million in the reported quarter, down 7.3% year over year. However, the top line beat the Zacks Consensus Estimate of $7 million.
The decline in revenueswas owing to revenues recognized under the Allergan collaboration recorded in the fourth quarter of 2019, but the same did not happen for the three months ended Dec 31, 2020 as a result of terminating the Allergan collaboration.
Quarter in Detail
In the fourth quarter, research and development expenses were $61.5 million, up 76.7% from the year-ago figure due to increased expenses related to the development of EDIT-101.
General and administrative expenses decreased 6.5% to $15.8 million owing to lower performance bonus expenses due to employee turnover in the reported quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 8.58% due to these changes.
VGM Scores
At this time, Editas 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 trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Editas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Editas (EDIT) Down 9.6% Since Last Earnings Report?
A month has gone by since the last earnings report for Editas Medicine (EDIT - Free Report) . Shares have lost about 9.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Editas 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 drivers.
Editas Misses on Q4 Earnings, Beats on Revenues
Editasincurred a loss of $1 per share in the fourth quarter of 2020, which was wider than the Zacks Consensus Estimate of a loss of 82 cents per share and also the year-ago quarter’s loss of 74 cents.
Collaboration, and other research and development revenues comprising the company’s top line came in at $11.4 million in the reported quarter, down 7.3% year over year. However, the top line beat the Zacks Consensus Estimate of $7 million.
The decline in revenueswas owing to revenues recognized under the Allergan collaboration recorded in the fourth quarter of 2019, but the same did not happen for the three months ended Dec 31, 2020 as a result of terminating the Allergan collaboration.
Quarter in Detail
In the fourth quarter, research and development expenses were $61.5 million, up 76.7% from the year-ago figure due to increased expenses related to the development of EDIT-101.
General and administrative expenses decreased 6.5% to $15.8 million owing to lower performance bonus expenses due to employee turnover in the reported quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 8.58% due to these changes.
VGM Scores
At this time, Editas 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 trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Editas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.