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Reata Pharmaceuticals, Inc. (RETA) Up 4.7% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for Reata Pharmaceuticals, Inc. (RETA - Free Report) . Shares have added about 4.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Reata Pharmaceuticals, Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Reata Q2 Earnings Miss, Revenues Down Y/Y, Stock Down

Reata Pharmaceuticals reported a loss of $2.02 per share in second-quarter 2022, wider than the Zacks Consensus Estimate of a loss of $1.90.

However, the above loss included stock-based compensation and a non-cash interest expense. Adjusted loss for the quarter was $1.36 per share, wider than the loss of $1.32 per share recorded in the year-ago period.

Total revenues, comprising collaboration revenues, were $0.76 million, down 6.1% year over year. Revenues missed the Zacks Consensus Estimate of $3 million.

Quarter in Detail

Adjusted research and development expenses were down 5.2% year over year to $33 million. Adjusted general and administrative expenses were $17.6 million, up 25.7% from the year-ago period.

The company had cash and cash equivalents and marketable securities of $481.5 million as of Jun 30, 2022, compared with $532 million as of Mar 31, 2022. The company expects its cash resources to fund operations through 2024-end.

How Have Estimates Been Moving Since Then?

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

VGM Scores

Currently, Reata Pharmaceuticals, Inc. has an average Growth Score of C, a grade with the same score on the momentum front. 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 broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Reata Pharmaceuticals, Inc. 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

Reata Pharmaceuticals, Inc. belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Blueprint Medicines (BPMC - Free Report) , has gained 3.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.

Blueprint Medicines reported revenues of $36.55 million in the last reported quarter, representing a year-over-year change of +33.9%. EPS of -$2.68 for the same period compares with -$1.86 a year ago.

Blueprint Medicines is expected to post a loss of $2.43 per share for the current quarter, representing a year-over-year change of -21.5%. Over the last 30 days, the Zacks Consensus Estimate has changed 0%.

Blueprint Medicines has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.


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