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Why Is Bluebird (BLUE) Up 17.2% Since Last Earnings Report?
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A month has gone by since the last earnings report for Bluebird Bio (BLUE - Free Report) . Shares have added about 17.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Bluebird 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.
Q4 Results
bluebird reported revenues of $0.06 million in the fourth quarter compared with $1.6 million in the year-ago quarter. Revenues missed the Zacks Consensus Estimate of $102 million. bluebird anticipates reporting commercial revenues in the first quarter of 2023.
The company reported earnings of 38 cents per share in the fourth quarter against a loss of $1.83 per share in the year-ago quarter.
Quarter in Detail
Research and development expenses from continuing operations decreased to $45.9 million from $79.4 million a year ago, primarily due to reduced employee compensation, benefits, other headcount-related expenses, information technology and facility-related costs, clinical trial and laboratory costs.
Selling, general and administrative expenses from continuing operations were $30.7 million, down from $53.2 million in the year-ago quarter. The decrease was primarily due to decreased employee compensation, benefit and other headcount-related expenses and reduced commercial readiness activities due to the company’s decision to focus its efforts on the U.S. market.
In the fourth quarter of 2022, the company recorded a gain of $102 million from the sale of priority review vouchers (PRV).
As of Dec 31, 2022, bluebird had cash and cash equivalents, marketable securities and restricted cash balance of approximately $227 million. Based on current operating plans, bluebird expects its cash, cash equivalents, restricted cash and marketable securities, including the net proceeds from the sale of its PRV of $93 million and net proceeds of $131 million from its public offering in January, will be sufficient to meet its planned operating expenses and capital expenditure requirements into the fourth quarter of 2024. This runway includes approximately $45 million in restricted cash.
bluebird was granted two PRVs upon the FDA’s approval of Zynteglo (betibeglogene autotemcel) for the treatment of beta-thalassemia in adult and pediatric patients requiring regular red blood cell transfusions and Skysona (elivaldogene autotemcel) for the treatment of early, active cerebral adrenoleukodystrophy on Aug 17, 2022 and Sept 16, 2022, respectively.
The company entered into a definitive agreement to sell its first PRV for $102 million in November 2022. It entered a final agreement to sell its second PRV for $95 million in January 2023.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted -9.1% due to these changes.
VGM Scores
Currently, Bluebird has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest 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 indicates a downward shift. Notably, Bluebird 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
Bluebird belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Geron (GERN - Free Report) , has gained 11.2% over the past month. More than a month has passed since the company reported results for the quarter ended December 2022.
Geron reported revenues of $0.1 million in the last reported quarter, representing a year-over-year change of -90.4%. EPS of -$0.10 for the same period compares with -$0.10 a year ago.
For the current quarter, Geron is expected to post a loss of $0.09 per share, indicating no change 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 #3 (Hold) for Geron. Also, the stock has a VGM Score of F.
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Why Is Bluebird (BLUE) Up 17.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Bluebird Bio (BLUE - Free Report) . Shares have added about 17.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Bluebird 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.
Q4 Results
bluebird reported revenues of $0.06 million in the fourth quarter compared with $1.6 million in the year-ago quarter. Revenues missed the Zacks Consensus Estimate of $102 million. bluebird anticipates reporting commercial revenues in the first quarter of 2023.
The company reported earnings of 38 cents per share in the fourth quarter against a loss of $1.83 per share in the year-ago quarter.
Quarter in Detail
Research and development expenses from continuing operations decreased to $45.9 million from $79.4 million a year ago, primarily due to reduced employee compensation, benefits, other headcount-related expenses, information technology and facility-related costs, clinical trial and laboratory costs.
Selling, general and administrative expenses from continuing operations were $30.7 million, down from $53.2 million in the year-ago quarter. The decrease was primarily due to decreased employee compensation, benefit and other headcount-related expenses and reduced commercial readiness activities due to the company’s decision to focus its efforts on the U.S. market.
In the fourth quarter of 2022, the company recorded a gain of $102 million from the sale of priority review vouchers (PRV).
As of Dec 31, 2022, bluebird had cash and cash equivalents, marketable securities and restricted cash balance of approximately $227 million. Based on current operating plans, bluebird expects its cash, cash equivalents, restricted cash and marketable securities, including the net proceeds from the sale of its PRV of $93 million and net proceeds of $131 million from its public offering in January, will be sufficient to meet its planned operating expenses and capital expenditure requirements into the fourth quarter of 2024. This runway includes approximately $45 million in restricted cash.
bluebird was granted two PRVs upon the FDA’s approval of Zynteglo (betibeglogene autotemcel) for the treatment of beta-thalassemia in adult and pediatric patients requiring regular red blood cell transfusions and Skysona (elivaldogene autotemcel) for the treatment of early, active cerebral adrenoleukodystrophy on Aug 17, 2022 and Sept 16, 2022, respectively.
The company entered into a definitive agreement to sell its first PRV for $102 million in November 2022. It entered a final agreement to sell its second PRV for $95 million in January 2023.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted -9.1% due to these changes.
VGM Scores
Currently, Bluebird has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest 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 indicates a downward shift. Notably, Bluebird 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
Bluebird belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Geron (GERN - Free Report) , has gained 11.2% over the past month. More than a month has passed since the company reported results for the quarter ended December 2022.
Geron reported revenues of $0.1 million in the last reported quarter, representing a year-over-year change of -90.4%. EPS of -$0.10 for the same period compares with -$0.10 a year ago.
For the current quarter, Geron is expected to post a loss of $0.09 per share, indicating no change 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 #3 (Hold) for Geron. Also, the stock has a VGM Score of F.