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CRISPR (CRSP) to Report Q2 Earnings: What's in the Cards?

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We expect investors to focus on CRISPR Therapeutics AG’s (CRSP - Free Report) progress with its lead gene-editing candidate CTX001 and other pipeline candidates when it reports second-quarter 2021 earnings results.

The company’s surprise record has been dismal so far as its earnings missed estimates in each of the trailing four quarters, the average negative surprise being 20.05%. In the last reported quarter, CRISPR Therapeutics reported a negative earnings surprise of 4.14%.

Shares of CRISPR Therapeutics have declined 18.5% so far this year compared with the industry’s decrease of 0.4%.

Zacks Investment Research
Image Source: Zacks Investment Research

Let’s see how things are shaping up for the quarter to be reported.

Factors at Play

With no approved product in its portfolio, CRISPR Therapeutics’ top line mainly comprises grants and collaboration revenues. The company is solely dependent on Vertex Pharmaceuticals (VRTX - Free Report) for collaboration revenues. In the last reported quarter, revenues increased year over year, a trend that most likely continued in the to-be-reported quarter.

CRISPR Therapeutics made rapid progress with the development of its lead pipeline candidate CTX001, the CRISPR/Cas9 gene-editing therapy. The candidate is currently being developed in mid-stage studies for treating sickle cell disease (SCD) and transfusion-dependent beta thalassemia (TDT) in partnership with Vertex.

In June 2021, both companies announced positive new data from a phase I/II study evaluating CTX001 in patients with TDT as well as those with SCD with a follow-up of at least three months. The gene-editing therapy candidate demonstrated a consistent and sustained response to treatment in the given patient population.

In April 2021, Vertex increased its investment in the existing collaboration agreement with CRISPR Therapeutics for the manufacturing and commercialization of CTX001. Under this amended deal, CRISPR Therapeutics will receive an upfront payment of $900 million from Vertex and also be entitled to a potential $200 million upon the first regulatory approval of CTX001. We expect management to provide more updates on the development path ahead for CTX001 on the upcoming investors’ call.

CRISPR Therapeutics is also developing three gene-edited allogeneic cell therapy programs consisting of chimeric antigen receptor T cell (CAR-T) candidates, namely CTX110, CTX120 and CTX130 for the treatment of hematological and solid tumor cancers. Investors will be keen to get an update on the progress of these candidates during the upcoming earnings conference as top-line data from all the studies are expected later in 2021.

The activities related to the development of CTX001 and other pipeline candidates are likely to have escalated operating expenses in the to-be-reported quarter.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for CRISPR Therapeutics this time around. 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. Unfortunately, that is not the case here as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: CRISPR Therapeutics’ Earnings ESP is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate stand at $4.19 per share.

Zacks Rank: CRISPR Therapeutics currently carries a Zacks Rank #4 (Sell).

CRISPR Therapeutics AG Price and EPS Surprise

CRISPR Therapeutics AG Price and EPS Surprise

CRISPR Therapeutics AG price-eps-surprise | CRISPR Therapeutics AG Quote

Stocks to Consider

Here are a few stocks you may want to consider as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Aptose Biosciences Inc. (APTO - Free Report) has an Earnings ESP of +12.73% and a Zacks Rank #3, currently. The company is scheduled to report earnings on Aug 3. You can see  the complete list of today’s Zacks #1 Rank stocks here.

Illumina, Inc. (ILMN - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank #2 at present. The company is scheduled to report earnings on Aug 5.