A month has gone by since the last earnings report for Fate Therapeutics (FATE Quick QuoteFATE - Free Report) . Shares have lost about 17.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Fate Therapeutics 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.

Fate Incurs Narrower-Than-Expected Q1 Loss on Lower Expenses

Fate reported a first-quarter 2023 loss of 19 cents per share, narrower than the Zacks Consensus Estimate of a loss of 55 cents and the year-ago quarter’s loss of 68 cents. The year-over-year improvement was due to higher revenues and lower expenses owing to corporate restructuring.

The company earned collaboration revenues of $59 million in the first quarter, which surpassed the Zacks Consensus Estimate of $42 million. The figure also increased from $18.4 million reported in the prior-year period.

R&D expenses decreased to $65.6 million from $72.1 million in the year-ago quarter. G&A expenses increased 5.8% year over year to $21.9 million.

How Have Estimates Been Moving Since Then?

It turns out, estimates review flatlined during the past month.

VGM Scores

At this time, Fate Therapeutics has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, 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

Fate Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.