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Bluebird (BLUE) Up 9.1% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for Bluebird Bio (BLUE - Free Report) . Shares have added about 9.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Bluebird 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.

bluebird Q4 Loss Narrower than Expected, Sales Miss Estimates

bluebird reported a loss of $3.01 per share in fourth-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of $3.02 and the year-ago quarter's loss of $4.04.

Revenues of $10.7 million missed the Zacks Consensus Estimate of $15 million. The figure grew from $10 million in the year-ago quarter.

Quarter in Detail    

Research and development expenses decreased to $137.1 million from $161.8 million a year ago due to a decline in manufacturing costs.

Selling, general and administrative expenses of $77 million were up from $76.2 million in the year-ago quarter due to increased headcount and costs incurred to support the company’s ongoing operations and growth of its pipeline.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

Currently, Bluebird has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, 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 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 looks promising. Notably, Bluebird has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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