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Why Is Rocket Pharmaceuticals (RCKT) Down 13.6% Since Last Earnings Report?

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It has been about a month since the last earnings report for Rocket Pharmaceuticals (RCKT - Free Report) . Shares have lost about 13.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Rocket Pharmaceuticals 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 catalysts.

Narrower Than Expected Loss in Q4

Rocket reported a loss of 64 cents per share in the fourth quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of 80 cents. In the year-ago quarter, the company posted a loss of 92 cents.

As the company lacks any marketed product in its portfolio, it did not record any revenues during the quarter.

Quarter in Detail

In the reported quarter, general and administrative (G&A) expenses rose 13% year over year to $21.5 million due to pre-commercialization activities and higher employee-related costs.

Research and development (R&D) expenses were $41.7 million, down 17% from the year-ago quarter’s figure.

As of Dec 31, 2023, Rocket Pharmaceuticals had cash, cash equivalents and investments of $407.5 million compared with $437.2 million on Sep 30, 2023. Management expects this cash balance to fund operations and meet capital expenditure requirements into 2026.

Full-Year Results

Devoid of marketed products, Rocket did not record any revenues during the year.

The company reported a loss of $2.92 per share for full-year 2023. In the year-ago period, the company reported a loss of $3.26.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates revision.

VGM Scores

At this time, Rocket Pharmaceuticals has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. 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 D. 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, Rocket Pharmaceuticals 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

Rocket Pharmaceuticals belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Moderna (MRNA - Free Report) , has gained 11.7% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.

Moderna reported revenues of $2.81 billion in the last reported quarter, representing a year-over-year change of -44.7%. EPS of $0.55 for the same period compares with $3.61 a year ago.

For the current quarter, Moderna is expected to post a loss of $3.15 per share, indicating a change of -1757.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -3.9% over the last 30 days.

Moderna 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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