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Mirati (MRTX) Down 35.5% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Mirati . Shares have lost about 35.5% in that time frame, underperforming the S&P 500.

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

Mirati Q1 Loss Wider Than Expected, Sales Beat

Mirati reported first-quarter 2022 loss of $3.40 per share, wider than the Zacks Consensus Estimate of a loss of $3.37 as well as the year-ago loss of $2.67.

Mirati reported $0.7 million as collaboration revenues for the first quarter, beating the Zacks Consensus Estimate of nil revenues. Management did not record any revenues in the year-ago quarter.

Quarter in Detail

Research and development expenses rose 25.9% from the prior-year quarter’s level to $131.0 million due to an increase in development expenses of pipeline candidates, preclinical and early discovery activities plus higher employee-related expenses.

General and administrative expenses rose 90.3% from the year-ago quarter’s level to $54.0 million due to increased professional services expenses and higher employee-related costs in the quarter.

Cash, cash equivalents and short-term investments as of Mar 31, 2022, were $1.3 billion compared with $1.5 billion as of Dec 31, 2021.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

The consensus estimate has shifted 6.59% due to these changes.

VGM Scores

At this time, Mirati 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 fifth 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, Mirati has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Mirati is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Repligen (RGEN - Free Report) , a stock from the same industry, has gained 8.7%. The company reported its results for the quarter ended March 2022 more than a month ago.

Repligen reported revenues of $206.4 million in the last reported quarter, representing a year-over-year change of +44.5%. EPS of $0.92 for the same period compares with $0.68 a year ago.

For the current quarter, Repligen is expected to post earnings of $0.72 per share, indicating a change of -8.9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Repligen. Also, the stock has a VGM Score of D.


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