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Mirati (MRTX) Up 1.1% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for Mirati . Shares have added about 1.1% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Mirati due for a pullback? 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.

Q3 Earnings Beat, Sales Miss Estimates

Mirati reported a loss of $2.49 per share for third-quarter 2023, which was narrower than the Zacks Consensus Estimate of a loss of $2.92 as well as the year-ago quarter’s loss of $3.09 per share.

Mirati reported $16.4 million in total revenues for the third quarter, missing the Zacks Consensus Estimate of $19.02 million. Mirati had recorded revenues of $5.4 million in the year-ago quarter.

Quarter in Detail

Third-quarter revenues comprised $16.4 million as product revenues from Krazati/adagrasib, compared with $13.4 million in the previous quarter.No product revenues were recorded in the year-ago quarter.

There were no license and collaboration revenues in the quarter compared with $5.4 million in the year-ago quarter.

Research and development expenses declined 12.4% from the prior-year quarter’s level to $114.8 million. This decrease was due to a reduction in clinical development costs for sitravatinib as the company scrapped the development of the candidate, and a decline in share-based compensation.

Selling, general and administrative expenses rose 18.4% from the year-ago quarter’s level to $72.0 million due to an increase in commercial-related costs to support the marketing and sales of Krazati and higher headcount-related costs.

Cash, cash equivalents and short-term investments as of Sep 30, 2023 were $976.4 million compared with $779.4 million as of Jun 30, 2023.

How Have Estimates Been Moving Since Then?

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

VGM Scores

At this time, Mirati has a subpar Growth Score of D, 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 bottom 20% 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 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 belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Celldex Therapeutics (CLDX - Free Report) , has gained 9.1% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.

Celldex reported revenues of $1.52 million in the last reported quarter, representing a year-over-year change of +270.7%. EPS of -$0.81 for the same period compares with -$0.57 a year ago.

Celldex is expected to post a loss of $0.85 per share for the current quarter, representing a year-over-year change of -51.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -4.3%.

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


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