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Why Is Editas (EDIT) Down 26.2% Since Last Earnings Report?
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A month has gone by since the last earnings report for Editas Medicine (EDIT - Free Report) . Shares have lost about 26.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Editas due for a breakout? 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.
Editas Q4 Earnings and Revenues Top Estimates
Editasincurred a loss of 23 cents per share in the fourth quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of 52 cents. The company had reported a loss of 88 cents per share in the year-ago quarter.
Collaboration and other research and development (R&D) revenues, which comprise the company’s top line, were $60 million in the reported quarter, up significantly from $6.5 million reported in the year-ago quarter. The reported figure beat the Zacks Consensus Estimate of $13 million. The massive uptick in revenues was primarily driven by payments received under Editas’ licensing agreement with Vertex during the fourth quarter.
Quarter in Detail
In the fourth quarter of 2023, R&D expenses increased 34% year over tear to $69.6 million. The uptick in R&D expenses can be attributed tosublicense payments made in connection with the Vertex license agreement, offset by savings from Editas’ strategic reprioritization
General and administrative expenses were $14.5 million in the reported quarter, down 20% year over year. The decrease was on the grounds of reduced patent and legal costs.
Editas had cash, cash equivalents and investments worth $427.1 million as of Dec 31, 2023, compared with $446.4 million as of Sep 30, 2023. The company expects its existing cash, cash equivalents and marketable securities, together with the near-term annual license fees and the contingent upfront payment from Vertex, to fund operating expenses and capital expenditures in 2026.
2023 Results
Total collaboration and other R&D revenues for full-year 2023 were clocked at $78.1 million, up about 296% year over year. The reported figure beat the Zacks Consensus Estimate of $32 million.
For the full year, Editas recorded a loss of $2.02 per share, narrower than the loss of $3.21 reported in 2022 as well as the Zacks Consensus Estimate of a loss of $2.31.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Editas has an average Growth Score of C, a grade with the same score on the momentum front. 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 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, Editas 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
Editas is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Moderna (MRNA - Free Report) , a stock from the same industry, has gained 15.5%. The company reported its results for the quarter ended December 2023 more than a month ago.
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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Why Is Editas (EDIT) Down 26.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Editas Medicine (EDIT - Free Report) . Shares have lost about 26.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Editas due for a breakout? 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.
Editas Q4 Earnings and Revenues Top Estimates
Editasincurred a loss of 23 cents per share in the fourth quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of 52 cents. The company had reported a loss of 88 cents per share in the year-ago quarter.
Collaboration and other research and development (R&D) revenues, which comprise the company’s top line, were $60 million in the reported quarter, up significantly from $6.5 million reported in the year-ago quarter. The reported figure beat the Zacks Consensus Estimate of $13 million. The massive uptick in revenues was primarily driven by payments received under Editas’ licensing agreement with Vertex during the fourth quarter.
Quarter in Detail
In the fourth quarter of 2023, R&D expenses increased 34% year over tear to $69.6 million. The uptick in R&D expenses can be attributed tosublicense payments made in connection with the Vertex license agreement, offset by savings from Editas’ strategic reprioritization
General and administrative expenses were $14.5 million in the reported quarter, down 20% year over year. The decrease was on the grounds of reduced patent and legal costs.
Editas had cash, cash equivalents and investments worth $427.1 million as of Dec 31, 2023, compared with $446.4 million as of Sep 30, 2023. The company expects its existing cash, cash equivalents and marketable securities, together with the near-term annual license fees and the contingent upfront payment from Vertex, to fund operating expenses and capital expenditures in 2026.
2023 Results
Total collaboration and other R&D revenues for full-year 2023 were clocked at $78.1 million, up about 296% year over year. The reported figure beat the Zacks Consensus Estimate of $32 million.
For the full year, Editas recorded a loss of $2.02 per share, narrower than the loss of $3.21 reported in 2022 as well as the Zacks Consensus Estimate of a loss of $2.31.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Editas has an average Growth Score of C, a grade with the same score on the momentum front. 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 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, Editas 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
Editas is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Moderna (MRNA - Free Report) , a stock from the same industry, has gained 15.5%. The company reported its results for the quarter ended December 2023 more than a month ago.
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.