We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Fate Therapeutics (FATE) Down 23.5% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Fate Therapeutics (FATE - Free Report) . Shares have lost about 23.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Fate Therapeutics 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 drivers.
FATE Q2 Earnings Beat on Lower Expenses, Revenues Miss
Fate reported a loss of 54 cents per share in the second quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of 58 cents and the year-ago quarter’s reported loss of 79 cents.
The loss narrowed year over year due to lower R&D expenses.
The company earned collaboration revenues of $0.9 million in the second quarter, which missed the Zacks Consensus Estimate of $7 million and was down from $18.5 million reported in the year-ago quarter.
Revenues were derived from the company’s preclinical development activities for a second collaboration candidate targeting an undisclosed solid tumor antigen under its collaboration with ONO Pharmaceutical.
R&D expenses declined 49.7% to $40.9 million from the year-ago quarter's level. G&A expenses increased 11.1% to $22.6 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
At this time, Fate Therapeutics has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Fate Therapeutics 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
Fate Therapeutics is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Intercept Pharmaceuticals , a stock from the same industry, has gained 8.5%. The company reported its results for the quarter ended June 2023 more than a month ago.
Intercept reported revenues of $83.72 million in the last reported quarter, representing a year-over-year change of -16.6%. EPS of -$0.14 for the same period compares with -$0.68 a year ago.
For the current quarter, Intercept is expected to post a loss of $0.28 per share, indicating a change of +90.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -5% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Intercept. Also, the stock has a VGM Score of C.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Fate Therapeutics (FATE) Down 23.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Fate Therapeutics (FATE - Free Report) . Shares have lost about 23.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Fate Therapeutics 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 drivers.
FATE Q2 Earnings Beat on Lower Expenses, Revenues Miss
Fate reported a loss of 54 cents per share in the second quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of 58 cents and the year-ago quarter’s reported loss of 79 cents.
The loss narrowed year over year due to lower R&D expenses.
The company earned collaboration revenues of $0.9 million in the second quarter, which missed the Zacks Consensus Estimate of $7 million and was down from $18.5 million reported in the year-ago quarter.
Revenues were derived from the company’s preclinical development activities for a second collaboration candidate targeting an undisclosed solid tumor antigen under its collaboration with ONO Pharmaceutical.
R&D expenses declined 49.7% to $40.9 million from the year-ago quarter's level. G&A expenses increased 11.1% to $22.6 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
At this time, Fate Therapeutics has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Fate Therapeutics 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
Fate Therapeutics is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Intercept Pharmaceuticals , a stock from the same industry, has gained 8.5%. The company reported its results for the quarter ended June 2023 more than a month ago.
Intercept reported revenues of $83.72 million in the last reported quarter, representing a year-over-year change of -16.6%. EPS of -$0.14 for the same period compares with -$0.68 a year ago.
For the current quarter, Intercept is expected to post a loss of $0.28 per share, indicating a change of +90.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -5% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Intercept. Also, the stock has a VGM Score of C.