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Blueprint Medicines (BPMC) Up 3.7% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Blueprint Medicines (BPMC - Free Report) . Shares have added about 3.7% in that time frame, underperforming the S&P 500.

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

Blueprint Medicines' Q3 Earnings & Revenues Top Mark

Blueprint Medicines reported a loss of $2.23 per share for third-quarter 2022, narrower than the Zacks Consensus Estimate of a loss of $2.51. The loss was also narrower than our estimate of a loss of $2.44 per share. The company reported a loss of $2.00 per share in the year-ago quarter.

Quarterly revenues of $66 million also surpassed the Zacks Consensus Estimate of $43 million. Sales were up significantly from the year-ago figure of $24.2 million. Total revenues were higher than our estimate of $43.9 million in the reported quarter.

Quarter in Detail

Since the company has transferred the responsibilities of booking U.S. product sales of Gavreto (pralsetinib) to Roche on Jul 1, 2021, Blueprint Medicines only records its share of profits for the drug in its financial results.

Blueprint Medicines’ total revenues of $66 million comprised net product revenues from Ayvakit sales, collaboration revenues and license revenues-related party. Net product revenues from Ayvakit sales were $28.6 million. Sales of the drug grew slightly on a sequential basis and 65.8% on a year-over-year basis.

Collaboration revenues were $9.8 million, primarily generated from the agreements with CStone Pharmaceutical and Roche.

License revenues from the related party were $27.5 million in the third quarter of 2022. The year-over-year surge in total revenues can be attributed to license revenues.

Research and development expenses were $128 million, up 51.6% from the year-ago figure, owing to higher costs associated with clinical studies and increased costs due to early discovery efforts.

Selling, general and administrative expenses were $57.6 million, up 15.7% year over year, on account of higher costs related to the commercialization of Ayvakit/Ayvakyt.

2022 Guidance

Blueprint Medicines expects to achieve the high end of the previously provided total revenue guidance of $180-$200 million for 2022. The Zacks Consensus Estimate for the same is currently pegged at $190.57 million.

Net Ayvakit revenues are expected to be $108-$111 million for 2022 compared with the earlier mentioned $115-$130 million.

How Have Estimates Been Moving Since Then?

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

The consensus estimate has shifted -8.9% due to these changes.

VGM Scores

Currently, Blueprint Medicines has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% 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 indicates a downward shift. Notably, Blueprint Medicines 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

Blueprint Medicines is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Bristol Myers Squibb (BMY - Free Report) , a stock from the same industry, has gained 3.7%. The company reported its results for the quarter ended September 2022 more than a month ago.

Bristol Myers reported revenues of $11.22 billion in the last reported quarter, representing a year-over-year change of -3.5%. EPS of $1.99 for the same period compares with $2 a year ago.

For the current quarter, Bristol Myers is expected to post earnings of $1.73 per share, indicating a change of -5.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.7% over the last 30 days.

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


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