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Fate Therapeutics (FATE) Up 10.3% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Fate Therapeutics (FATE - Free Report) . Shares have added about 10.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Fate Therapeutics 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 drivers.
Fate TherapeuticsQ3 Earnings Beat, Revenues Fall Y/Y
Fate Therapeuticsreported a loss of 46 cents per share in the third quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of 59 cents and the year-ago loss of 86 cents.
The loss narrowed year over year due to lower research and development (R&D) expenses.
The company earned collaboration revenues of $2 million in the third quarter, which also surpassed the Zacks Consensus Estimate of $1 million but were down from $15 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 57.1% to $34.3 million in the reported quarter. G&A expenses also witnessed a decline of 12.1% to $18.9 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 7.51% due to these changes.
VGM Scores
Currently, Fate Therapeutics has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. 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 upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Fate Therapeutics has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Fate Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Karuna Therapeutics, Inc. , has gained 21.9% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Karuna Therapeutics, Inc. reported revenues of $0 million in the last reported quarter, representing a year-over-year change of -100%. EPS of -$3.16 for the same period compares with -$2.38 a year ago.
For the current quarter, Karuna Therapeutics, Inc. is expected to post a loss of $2.63 per share, indicating a change of -18.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.8% over the last 30 days.
Karuna Therapeutics, Inc. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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Fate Therapeutics (FATE) Up 10.3% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Fate Therapeutics (FATE - Free Report) . Shares have added about 10.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Fate Therapeutics 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 drivers.
Fate TherapeuticsQ3 Earnings Beat, Revenues Fall Y/Y
Fate Therapeuticsreported a loss of 46 cents per share in the third quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of 59 cents and the year-ago loss of 86 cents.
The loss narrowed year over year due to lower research and development (R&D) expenses.
The company earned collaboration revenues of $2 million in the third quarter, which also surpassed the Zacks Consensus Estimate of $1 million but were down from $15 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 57.1% to $34.3 million in the reported quarter. G&A expenses also witnessed a decline of 12.1% to $18.9 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 7.51% due to these changes.
VGM Scores
Currently, Fate Therapeutics has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. 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 upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Fate Therapeutics has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Fate Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Karuna Therapeutics, Inc. , has gained 21.9% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Karuna Therapeutics, Inc. reported revenues of $0 million in the last reported quarter, representing a year-over-year change of -100%. EPS of -$3.16 for the same period compares with -$2.38 a year ago.
For the current quarter, Karuna Therapeutics, Inc. is expected to post a loss of $2.63 per share, indicating a change of -18.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.8% over the last 30 days.
Karuna Therapeutics, Inc. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.