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CRISPR Therapeutics to Report Q3 Earnings: Is a Beat in Store?

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We expect CRISPR Therapeutics (CRSP - Free Report) to surpass expectations when it reports third-quarter 2024 results. In the last reported quarter, the company missed on earnings by 8.76%.

The Zacks Consensus Estimate for sales is pinned at $6.4 million, while the same for earnings is pegged at a loss of $1.33 per share.

Factors Shaping CRSP’s Upcoming Results

CRISPR Therapeutics’ top line currently includes grants and collaboration revenues from its partnership with large-cap biotech Vertex Pharmaceuticals (VRTX - Free Report) .

CRSP and partner VRTX’s one-shot gene therapy, Casgevy, was approved for two blood disorders, sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT), in the United States and Europe in late 2023/early 2024. Vertex leads the global development and commercialization of Casgevy under the terms of the 2021 agreement with support from CRISPR Therapeutics.

Casgevy is the first marketed product in CRSP’s portfolio. Though the therapy’s launch activities are already underway in several countries, we expect the company to have started recording Casgevy sales in the third quarter. Our model estimates for CRISPR’s share of the gene therapy sales are pegged at $5 million.

Investors will be keen to get more updates related to the commercialization of Casgevy at the upcoming earnings call.

Apart from Casgevy, CRISPR Therapeutics is pursuing the development of CRISPR candidates to create novel CAR-T cell therapies. Management is currently focused on the development of two next-generation CAR-T therapy candidates — CTX112 (targeting CD19-positive B-cell malignancies) and CTX131 (targeting relapsed or refractory solid tumors) — in separate phase I/II studies. Preliminary data from the CTX131 study is expected by this year’s end.

CRISPR Therapeutics is also exploring the potential of these next-generation candidates in other indications. In August, management announced that it had started two new clinical studies — one evaluating CTX131 for hematological malignancies (including T-cell lymphomas) and the other evaluating CTX112 in systemic lupus erythematosus indication. It also intends to evaluate CTX112 in other autoimmune indications.

Apart from immuno-oncology candidates, CRSP is currently studying its first two in-vivo candidates, CTX310 and CTX320, in separate phase I clinical studies targeting ANGPTL3 and lipoprotein(a), respectively.

Activities related to developing the company’s pipeline candidates are likely to have escalated operating expenses in the to-be-reported quarter.

CRSP’s Earnings Surprise History

The company’s earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 101.83%.

CRISPR Therapeutics AG Price and EPS Surprise

CRISPR Therapeutics AG Price and EPS Surprise

CRISPR Therapeutics AG price-eps-surprise | CRISPR Therapeutics AG Quote

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Shares of CRISPR Therapeutics have lost 24.3% in the year so far compared with the industry’s 3.9% decline.

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Image Source: Zacks Investment Research

What Our Model Predicts for CRSP

Our proven model predicts an earnings beat for CRISPR Therapeutics this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: CRISPR Therapeutics has an Earnings ESP of +100.00%. The Most Accurate Estimate stands at breakeven, while the Zacks Consensus Estimate is pegged at a loss of $1.33 per share.

Zacks Rank: CRSP currently carriesa Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Here are some other drug/biotech stocks that also have the right combination of elements to beat on earnings this time around:

Pfizer (PFE - Free Report) has an Earnings ESP of +2.68% and a Zacks Rank #3 at present.

Pfizer’s shares have lost 1.2% year to date. PFE beat on earnings in each of the trailing four quarters, delivering an average surprise of 69.82%. Pfizer is scheduled to release third-quarter results on Oct. 29.

Regeneron (REGN - Free Report) has an Earnings ESP of +2.65% and a Zacks Rank #3 at present.

Regeneron’s shares have risen 6.2% year to date. REGN beat on earnings in three of the trailing four quarters and missed the same in one, delivering an average surprise of 6.01%. REGN is set to report third-quarter 2024 results on Oct. 31.

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