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Why Is Beam Therapeutics (BEAM) Down 1.6% Since Last Earnings Report?
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It has been about a month since the last earnings report for Beam Therapeutics Inc. (BEAM - Free Report) . Shares have lost about 1.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Beam 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 drivers.
Beam Therapeutics Q2 Earnings Beat, Revenues Miss
Beam Therapeutics incurred a loss of $1.11 per share in the second quarter of 2024, narrower than the Zacks Consensus Estimate of a loss of $1.13. The company had recorded a loss of $1.08 per share in the year-ago quarter.
Total revenues, comprising license and collaboration revenues, came in at $11.7 million in the second quarter compared with $20.1 million reported in the year-ago period. The top line missed the Zacks Consensus Estimate of $14 million.
Quarter in Detail
Research and development expenses were $87 million in the second quarter, down almost 10.8% from the year-ago quarter’s level.
General and administrative expenses totaled $29.6 million, up around 19.8% year over year.
As of Jun 30, 2024, Beam Therapeutics had cash, cash equivalents and marketable securities worth $1.0 billion compared with $1.1 billion as of Mar 31, 2024.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
Currently, Beam Therapeutics has a poor Growth Score of F, 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
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Beam Therapeutics 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
Beam Therapeutics is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Vertex Pharmaceuticals (VRTX - Free Report) , a stock from the same industry, has gained 2.7%. The company reported its results for the quarter ended June 2024 more than a month ago.
Vertex reported revenues of $2.65 billion in the last reported quarter, representing a year-over-year change of +6.1%. EPS of -$12.83 for the same period compares with $3.89 a year ago.
Vertex is expected to post earnings of $4.11 per share for the current quarter, representing a year-over-year change of +0.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.3%.
Vertex has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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Why Is Beam Therapeutics (BEAM) Down 1.6% Since Last Earnings Report?
It has been about a month since the last earnings report for Beam Therapeutics Inc. (BEAM - Free Report) . Shares have lost about 1.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Beam 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 drivers.
Beam Therapeutics Q2 Earnings Beat, Revenues Miss
Beam Therapeutics incurred a loss of $1.11 per share in the second quarter of 2024, narrower than the Zacks Consensus Estimate of a loss of $1.13. The company had recorded a loss of $1.08 per share in the year-ago quarter.
Total revenues, comprising license and collaboration revenues, came in at $11.7 million in the second quarter compared with $20.1 million reported in the year-ago period. The top line missed the Zacks Consensus Estimate of $14 million.
Quarter in Detail
Research and development expenses were $87 million in the second quarter, down almost 10.8% from the year-ago quarter’s level.
General and administrative expenses totaled $29.6 million, up around 19.8% year over year.
As of Jun 30, 2024, Beam Therapeutics had cash, cash equivalents and marketable securities worth $1.0 billion compared with $1.1 billion as of Mar 31, 2024.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
Currently, Beam Therapeutics has a poor Growth Score of F, 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
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Beam Therapeutics 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
Beam Therapeutics is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Vertex Pharmaceuticals (VRTX - Free Report) , a stock from the same industry, has gained 2.7%. The company reported its results for the quarter ended June 2024 more than a month ago.
Vertex reported revenues of $2.65 billion in the last reported quarter, representing a year-over-year change of +6.1%. EPS of -$12.83 for the same period compares with $3.89 a year ago.
Vertex is expected to post earnings of $4.11 per share for the current quarter, representing a year-over-year change of +0.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.3%.
Vertex has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.