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CRISPR Therapeutics AG (CRSP) Down 16.5% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for CRISPR Therapeutics AG (CRSP - Free Report) . Shares have lost about 16.5% in that time frame, underperforming the S&P 500.

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

CRISPR Therapeutics Q2 Earnings & Sales Miss Estimates

CRISPR Therapeutics reported second-quarter 2022 net loss per share of $2.40, wider than the Zacks Consensus Estimate of a loss of $2.23. The company had posted earnings of $9.44 per share in the year-ago period.

CRISPR Therapeutics' total revenues, which comprise grants and collaboration revenues, came in at $0.2 million for the second quarter compared with $900 million reported in the year-ago period. The revenues comprised entirely of collaboration revenues. Revenues substantially missed the Zacks Consensus Estimate of $4.0 million.

The year-ago quarter’s revenues included a $900.0 million upfront payment from partner Vertex Pharmaceuticals related to an amended agreement for the development of exa-cel.

Quarter in Detail

For the reported quarter, research and development expenses were $123.2 million, up 49.7% from the year-ago figure to support the development of its immuno-oncology programs and costs related to the new U.S. R&D headquarters.

General and administrative expenses rose 8.8% year over year to $26.3 million.

As of Jun 30, 2022, the company had cash, cash equivalents and marketable securities of $2.07 billion compared with $2.2 billion as of Mar 31, 2022.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

Currently, CRISPR Therapeutics AG has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. 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. Notably, CRISPR Therapeutics AG has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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