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CRISPR Therapeutics AG (CRSP) Down 13.6% Since Last Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for CRISPR Therapeutics AG (CRSP - Free Report) . Shares have lost about 13.6% in that time frame, underperforming the S&P 500.

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

Q4 Earnings Top, Sales Lag Estimates

CRISPR Therapeutics reported a net loss per share of $1.41 in fourth-quarter 2022, narrower than the Zacks Consensus Estimate of a loss of $2.32. The company had posted a loss of $1.84 per share in the year-ago period.

CRISPR Therapeutics' total revenues, comprising collaboration revenues, came in at $0.01 million in the fourth quarter compared with $12.9 million reported in the year-ago period. The year-ago period figure comprised of both grant and collaboration revenues. Revenues substantially missed the Zacks Consensus Estimate of $12.2 million.

Quarter in Detail

For the reported quarter, research and development expenses rose 0.4% year over year to $103.6 million, while general and administrative expenses were down 10.6% to $21.2 million. Collaboration expenses for the fourth quarter reached $6.8 million, down 78.6% year-over-year.

As of Dec 31, 2022, the company had cash, cash equivalents and marketable securities of $1.87 billion compared with $1.97 billion as of Sep 30, 2022.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

The consensus estimate has shifted 17.47% due to these changes.

VGM Scores

Currently, CRISPR Therapeutics AG 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 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 trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise CRISPR Therapeutics AG 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

CRISPR Therapeutics AG is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Seattle Genetics , a stock from the same industry, has gained 23.4%. The company reported its results for the quarter ended December 2022 more than a month ago.

Seattle Genetics reported revenues of $528.15 million in the last reported quarter, representing a year-over-year change of +22.9%. EPS of -$0.80 for the same period compares with -$0.95 a year ago.

Seattle Genetics is expected to post a loss of $0.83 per share for the current quarter, representing a year-over-year change of -12.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.

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


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