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Is a Beat in the Cards for CRISPR (CRSP) in Q2 Earnings?

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We expect CRISPR Therapeutics (CRSP - Free Report) to surpass expectations when it reports second-quarter 2024 results next month.

Let’s see how things have shaped up for the quarter to be reported.

Factors to Note

CRISPR Therapeutics’ top line comprises grants and collaboration revenues from its partnership with Vertex Pharmaceuticals (VRTX - Free Report) .

Revenues in the last reported quarter solely comprised revenues from grants. The company did not record any collaboration revenues from Vertex in the first quarter. It remains to be seen whether the company recorded any collaboration revenues this time around.

The Zacks Consensus Estimate for CRSP’s total revenues currently stands at $8.39 million.

CRISPR and partner Vertex’s one-shot gene therapy, Casgevy, was approved for two blood disorders, sickle cell disease (SCD) and transfusion-dependent beta thalassemia (TDT), in the United States and Europe in late 2023/early 2024.

Casgevy is the first marketed product in CRISPR Therapeutics’ portfolio. Vertex leads the global development and commercialization of Casgevy under the terms of a 60/40 profit-sharing agreement with CRISPR Therapeutics.

Though Casgevy launch activities are already underway in several countries, Vertex expects to start recording Casgevy sales in the second half of 2024. Investors will be keen to get more updates related to the commercialization of Casgevy at the upcoming earnings call.

Shares of CRSP have plunged 10.2% so far this year compared with the industry’s decline of 3.1%.

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CRISPR Therapeutics is developing next-generation CAR-T therapy candidates — CTX112 (targeting CD19-positive B-cell malignancies) and CTX131 (targeting relapsed or refractory solid tumors) in separate phase I/II studies. Updates related to other studies on CTX112 and CTX131 targeting different indications are expected during the upcoming earnings call.

CRSP is currently studying its first two in-vivo candidates, CTX310 and CTX320, in separate phase I clinical studies targeting ANGPTL3 and lipoprotein(a), respectively.

Activities related to developing CRSP’s pipeline candidates are likely to have escalated operating expenses in the to-be-reported quarter.

Earnings Surprise History

CRISPR Therapeutics has a positive earnings surprise history. The company beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 117.78%. In the last reported quarter, CRSP’s earnings beat estimates by 12.27%.

Earnings Whispers

Our proven model predicts an earnings beat for CRISPR Therapeutics this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here, as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: CRISPR Therapeutics’ Earnings ESP is +100.00%. The Most Accurate Estimate stands at breakeven, while the Zacks Consensus Estimate is pegged at a loss of $1.37.

Zacks Rank: CRSP sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

CRISPR Therapeutics AG Price and EPS Surprise

CRISPR Therapeutics AG Price and EPS Surprise

CRISPR Therapeutics AG price-eps-surprise | CRISPR Therapeutics AG Quote

Other Stocks to Consider

Here are some other stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Adverum Biotechnologies, Inc. (ADVM - Free Report) has an Earnings ESP of +1.38% and a Zacks Rank #2 at present.

Shares of Adverum Biotechnologies have gained 3% in the year-to-date period. Earnings of Adverum Biotechnologies beat estimates in two of the last four quarters and missed on the remaining two occasions. ADVM delivered an average negative earnings surprise of 1.55% in the last four quarters.

Amgen Inc. (AMGN - Free Report) has an Earnings ESP of +1.33% and a Zacks Rank #3 at present.

Shares of Amgen have jumped 16.7% year to date. Amgen beat earnings estimates in each of the trailing last four quarters. AMGN delivered an average earnings surprise of 6.42% in the last four quarters. AMGN is set to report second-quarter earnings on Aug 6.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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