Back to top

Image: Bigstock

Editas (EDIT) Down 8.3% Since Last Earnings Report: Can It Rebound?

Read MoreHide Full Article

A month has gone by since the last earnings report for Editas Medicine (EDIT - Free Report) . Shares have lost about 8.3% in that time frame, underperforming the S&P 500.

But investors have to be wondering, 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 latest earnings report in order to get a better handle on the important catalysts.

Editas Q3 Loss Narrower Than Expected, Revenues Increase Y/Y

Editasreported a loss of 28 cents per share in the third quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of 38 cents. The company had incurred a loss of 75 cents per share in the year-ago quarter.

Collaboration and other research and development (R&D) revenues, which comprise Editas’ top line, were $7.5 million in the reported quarter, up significantly from the year-ago quarter’s figure. The reported figure comprehensively beat the Zacks Consensus Estimate of $2 million. The increase is primarily driven by the recognition of revenues related to a milestone achievement under a collaboration agreement with Bristol Myers.

EDIT’s Q3 Results in Detail

In the third quarter of 2025, R&D expenses decreased 58% to $19.8 million compared with $47.6 million reported in the year-ago period. The downtick in R&D expenses is mainly due to lower clinical and manufacturing costs following the abandonment of the reni-cel program in December 2024, partly offset by costs of in vivo research and discovery.

General and administrative expenses were $12.3 million in the reported quarter, down 32% year over year, due to a decrease in employee-related expenses resulting from a reduced workforce following the abandonment of the reni-cel program.

EDIT did not record any restructuring and impairment charges in the reported quarter.

Editas had cash, cash equivalents and investments worth $165.6 million as of Sept. 30, 2025, down from $178.5 million as of June 30, 2025. The company expects that its existing cash position, together with $17.3 million in ATM proceeds raised after Sept. 30, 2025, and retained payments from its Vertex license agreement, will fund operating and capital needs into the third quarter of 2027.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -42.11% due to these changes.

VGM Scores

Currently, Editas has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a score of F on the value side, putting it in the lowest quintile for value investors.

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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, 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 belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Beam Therapeutics Inc. (BEAM - Free Report) , has gained 17.8% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.

Beam Therapeutics reported revenues of $9.7 million in the last reported quarter, representing a year-over-year change of -32%. EPS of -$1.10 for the same period compares with -$1.17 a year ago.

For the current quarter, Beam Therapeutics is expected to post a loss of $1.13 per share, indicating a change of -3.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Beam Therapeutics. Also, the stock has a VGM Score of F.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Beam Therapeutics Inc. (BEAM) - free report >>

Editas Medicine, Inc. (EDIT) - free report >>

Published in