Back to top

Image: Bigstock

Editas (EDIT) Down 13.8% Since Last Earnings Report: Can It Rebound?

Read MoreHide Full Article

A month has gone by since the last earnings report for Editas Medicine (EDIT - Free Report) . Shares have lost about 13.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Editas due for a breakout? 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 catalysts.

Editas' Q3 Earnings Beat Estimates, Pipeline in Focus

Editas incurred a loss of 81 cents per share in the third quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of 87 cents. The company reported a loss of 57 cents per share in the year-ago quarter.

Collaboration, and other research and development revenues, comprising the company’s top line, were $0.04 million in the reported quarter compared with $6.2 million reported in the year-ago quarter. The Zacks Consensus Estimate for revenues was $6 million.

Quarter in Detail

In third-quarter 2022, research and development expenses were $41.3 million, up 40.9% from the year-ago figure, owing to higher expenses related to clinical studies.

General and administrative expenses were $16.2 million in the third quarter, which remained flat year over year.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates review.

VGM Scores

Currently, Editas 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 F on the value side, putting it in the fifth 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 upward for the stock, and the magnitude of these revisions indicates a downward shift. It comes with little surprise Editas has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Editas is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Myriad Genetics (MYGN - Free Report) , a stock from the same industry, has gained 28.9%. The company reported its results for the quarter ended September 2022 more than a month ago.

Myriad reported revenues of $156.4 million in the last reported quarter, representing a year-over-year change of -6.5%. EPS of -$0.19 for the same period compares with -$0.02 a year ago.

For the current quarter, Myriad is expected to post a loss of $0.15 per share, indicating a change of -650% from the year-ago quarter. The Zacks Consensus Estimate has changed -80.6% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Myriad. Also, the stock has a VGM Score of F.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Myriad Genetics, Inc. (MYGN) - free report >>

Editas Medicine, Inc. (EDIT) - free report >>

Published in