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Why Is Bluebird (BLUE) Down 13.3% Since Last Earnings Report?

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It has been about a month since the last earnings report for Bluebird Bio (BLUE - Free Report) . Shares have lost about 13.3% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Bluebird 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 catalysts.

bluebird Q2 Loss Wider Than Expected, Revenues Fall Y/Y

bluebird reported a loss of $3.58 per share for second-quarter 2021, wider than the Zacks Consensus Estimate of a loss of $3.26. The company reported a loss of 36 cents per share in the year-ago quarter.

Revenues of $7.5 million also missed the Zacks Consensus Estimate of $17 million. The top line declined significantly year over year due to a cumulative catch-up adjustment to revenues recorded in May 2020.

Quarter in Detail

Research and development expenses decreased to $144.3 million from $156.3 million recorded a year ago due to lower manufacturing expenses and decrease in clinical cost for pipeline development.

Selling, general and administrative expenses of $78.6 million were up from $68.6 million in the year-ago quarter due to higher consulting fees for the upcoming separation of the company’s severe genetic disease and oncology businesses, as well as increased employee compensation and headcount-related expenses.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates review.

VGM Scores

At this time, Bluebird has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. 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, Bluebird has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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