It has been about a month since the last earnings report for Editas Medicine (EDIT Quick QuoteEDIT - Free Report) . Shares have lost about 2.3% 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 the most recent earnings report in order to get a better handle on the important catalysts.

Editas Q1 Earnings & Revenues Lag Estimates

Editasincurred a loss of 76 cents per share in the first quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 63 cents. The company had reported a loss of 71 cents per share in the year-ago quarter.

Collaboration and other research and development (R&D) revenues, which comprise the company’s top line, were $1.1 million in the first quarter, down from $9.8 million reported in the year-ago quarter. The reported figure missed the Zacks Consensus Estimate of $12 million. The year-over-year decline in revenues can be attributed to the one-time sale of EDIT’s wholly-owned oncology assets and related licenses in January 2023.

Quarter in Detail

In the first quarter of 2024, R&D expenses increased 29.1% to $48.8 million compared with $37.8 million reported in the year-ago period. The uptick in R&D expenses can be attributed to sublicense payments and license payments and higher clinical and manufacturing costs.

General and administrative expenses were $19.3 million in the reported quarter, down 16.1% year over year. The decrease was due to one-time professional service expenses related to strategic initiatives and business development activities made in 2023.

Editas had cash, cash equivalents and investments worth $376.8 million as of Mar 31, 2024, compared with $427.1 million as of Dec 31, 2023. The company expects its existing cash, cash equivalents and marketable securities, together with the near-term annual license fees and the contingent upfront payment from Vertex, to fund operating expenses and capital expenditure in 2026.

How Have Estimates Been Moving Since Then?

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

The consensus estimate has shifted -10.74% due to these changes.

VGM Scores

Currently, Editas has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, 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, Editas 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

Editas is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Qiagen (QGEN Quick QuoteQGEN - Free Report) , a stock from the same industry, has gained 3.1%. The company reported its results for the quarter ended March 2024 more than a month ago.

Qiagen reported revenues of $458.8 million in the last reported quarter, representing a year-over-year change of -5.5%. EPS of $0.46 for the same period compares with $0.53 a year ago.

For the current quarter, Qiagen is expected to post earnings of $0.51 per share, indicating a change of -3.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.3% over the last 30 days.

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