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It has been about a month since the last earnings report for CRISPR Therapeutics AG (CRSP). Shares have added about 0.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CRISPR Therapeutics due for a pullback? 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 drivers.
Q3 Loss Narrower-Than-Expected, Sales Miss
CRISPR Therapeutics incurred a third-quarter 2024 loss of $1.01 per share, which was narrower than the Zacks Consensus Estimate of a loss of $1.33. In the year-ago period, the company had incurred a loss of $1.41 per share.
Total revenues, though negligible, were entirely from grant revenues, which were $0.6 million in the quarter. The reported figure significantly missed the Zacks Consensus Estimate of $6.4 million. The company did not generate revenues during the year-ago period.
Quarter in Detail
In the reported quarter, research and development expenses fell 9% year over year to $82.2 million. This was due to reduced variable external research and manufacturing costs.
General and administrative expenses declined 5% year over year to $17.4 million in the quarter.
Collaboration expenses in the quarter were $11.2 million, down 52% year over year. The downside was primarily due to the time it took to reach the deferral limit on costs related to the Casgevy program.
As of Sept. 30, 2024, the company had cash, cash equivalents, marketable securities and accounts receivables of $1.9 billion compared with $2.0 billion as of June 30, 2024.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
At this time, CRISPR Therapeutics has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. 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 these revisions indicates a downward shift. Notably, CRISPR Therapeutics 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
CRISPR Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Krystal Biotech, Inc. (KRYS), has gained 2.5% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.