It has been about a month since the last earnings report for Global Blood Therapeutics . Shares have lost about 16.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Global Blood 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.
Global Blood Reports Q1 Narrower Loss
Global Blood incurred a loss of $1.20 per share in first-quarter 2020, which was wider than a loss of 87 cents in the year-ago quarter due to higher selling, general and administrative expenses on account of its commercial operations and the launch of Oxbryta. The reported number was narrower than the Zacks Consensus Estimate of a loss of $1.47.
The company’s sales of $14.1 million, driven by sales of Oxbryta, beat the Zacks Consensus Estimate by 268.91%. The company did not generate product sales in the year-ago quarter.
Research and development expenses in the fourth quarter were $39.8 million, up from $34.5 million in the year-ago quarter, primarily attributable to increased costs related to preclinical research and manufacturing activities for inclacumab, increased employee-related costs, including non-cash stock compensation expenses, and higher costs for other preclinical research activities related to its Syros collaboration agreement.
Selling, general and administrative expenses were $47.7 million, up from $18 million in the year-ago quarter. The increase in SG&A expenses for this comparative period was primarily attributable to higher employee-related costs, including non-cash stock compensation expenses, increased professional and consulting services associated with the build-out of the company’s commercial operations and the launch of Oxbryta.
Pipeline Update
The company halted new patient screening and enrollment in company-sponsored clinical trials due to the COVID-19 pandemic.
Earlier, it initiated the HOPE-KIDS 2 study, a post-approval confirmatory study using transcranial Doppler flow velocity to assess the ability of Oxbryta to decrease the risk of stroke in children 2 to 15 years of age.
It has another pipeline candidate, inclacumab, which is a novel, fully human-monoclonal antibody against P-selectin, in its portfolio. The drug is being developed as a treatment for vaso-occlusive crises in patients with SCD.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 16.65% due to these changes.
VGM Scores
Currently, Global Blood has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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 looks promising. It comes with little surprise Global Blood has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Global Blood (GBT) Down 16.3% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Global Blood Therapeutics . Shares have lost about 16.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Global Blood 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.
Global Blood Reports Q1 Narrower Loss
Global Blood incurred a loss of $1.20 per share in first-quarter 2020, which was wider than a loss of 87 cents in the year-ago quarter due to higher selling, general and administrative expenses on account of its commercial operations and the launch of Oxbryta. The reported number was narrower than the Zacks Consensus Estimate of a loss of $1.47.
The company’s sales of $14.1 million, driven by sales of Oxbryta, beat the Zacks Consensus Estimate by 268.91%. The company did not generate product sales in the year-ago quarter.
Research and development expenses in the fourth quarter were $39.8 million, up from $34.5 million in the year-ago quarter, primarily attributable to increased costs related to preclinical research and manufacturing activities for inclacumab, increased employee-related costs, including non-cash stock compensation expenses, and higher costs for other preclinical research activities related to its Syros collaboration agreement.
Selling, general and administrative expenses were $47.7 million, up from $18 million in the year-ago quarter. The increase in SG&A expenses for this comparative period was primarily attributable to higher employee-related costs, including non-cash stock compensation expenses, increased professional and consulting services associated with the build-out of the company’s commercial operations and the launch of Oxbryta.
Pipeline Update
The company halted new patient screening and enrollment in company-sponsored clinical trials due to the COVID-19 pandemic.
Earlier, it initiated the HOPE-KIDS 2 study, a post-approval confirmatory study using transcranial Doppler flow velocity to assess the ability of Oxbryta to decrease the risk of stroke in children 2 to 15 years of age.
It has another pipeline candidate, inclacumab, which is a novel, fully human-monoclonal antibody against P-selectin, in its portfolio. The drug is being developed as a treatment for vaso-occlusive crises in patients with SCD.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 16.65% due to these changes.
VGM Scores
Currently, Global Blood has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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 looks promising. It comes with little surprise Global Blood has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.