A month has gone by since the last earnings report for Editas Medicine (EDIT). Shares have added about 0.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Editas due for a pullback? 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.
Editas Q4 Earnings & Sales Fall Shy of Estimates
Editas incurred a loss of 74 cents per share in the fourth quarter of 2019, much wider than the Zacks Consensus Estimate of 35 cents and also the year-ago loss of 52 cents.
Collaboration and other research and development revenues comprising the company’s total revenues came in at $12.3 million, up 101.6% year over year. However, the top line significantly missed the Zacks Consensus Estimate of $51 million.
Editas has no approved product in its portfolio at the moment. The company generates collaboration revenues and other research and development revenues. Its collaboration revenues increased in the fourth quarter owing to higher revenues recognized under its collaboration with Allergan (NYSE:AGN) and the amended collaboration agreement with Celgene (NASDAQ:CELG) (now part of Bristol-Myers).
Quarter in Detail
In the reported quarter, research and development expenses were $34.8 million, up 81.2% from the year-ago figure due to increased process and platform development costs.
General and administrative expenses also rose 28% to $16.9 million due to higher professional services costs.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted -17.8% due to these changes.
VGM Scores
Currently, Editas has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, 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 trending upward for the stock, and the magnitude of this revision 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.
Editas Medicine, Inc. (EDIT): Free Stock Analysis Report
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