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Why Is Editas (EDIT) Down 2.9% 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 lost about 2.9% 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 the most recent earnings report in order to get a better handle on the important drivers.

Editas Q1 Earnings Miss Estimates, Revenues Beat

Editas incurred a loss of 86 cents per share in the first quarter of 2021, which was wider than both the Zacks Consensus Estimate of a loss of 76 cents per share and the year-ago quarter’s loss of 69 cents.

Collaboration, and other research and development revenues comprising the company’s top line came in at $6.5 million in the reported quarter, up 14% year over year. The top line also beat the Zacks Consensus Estimate of $6.3 million.

Majority of the revenues in the reported quarter were recognized under the Company’s strategic alliance with Bristol Myers.

Quarter in Detail

In the first quarter, research and development expenses were $41.9 million, up 21.1% from the year-ago figure due to increased expenses related to clinical pipeline development.

General and administrative expenses increased 20.2% to $21.4 million owing to higher employee-related expenses.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

VGM Scores

At this time, Editas 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 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 downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Editas has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.


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