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Is a Beat in Store for CRISPR (CRSP) This Earnings Season?

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We expect CRISPR Therapeutics AG CRSP to surpass expectations when it reports first-quarter 2021 results.

The company’s earnings surprise record has been dismal so far as its earnings missed estimates in each of the trailing four quarters, the average negative earnings surprise being 20.39%. In the last-reported quarter, CRISPR Therapeutics reported a negative earnings surprise of 21.95%.

Shares of CRISPR Therapeutics have declined 17.8% so far this year compared with the industry’s decrease of 2.1%.

price chart for CRSP
price chart for CRSP


Let’s see how things are shaping up for the quarter to be reported.

Factors at Play

With no approved product in its portfolio, CRISPR Therapeutics is solely dependent on Vertex Pharmaceuticals VRTX for collaboration revenues. In the last-reported quarter, collaboration revenues were down significantly year over year, a trend most likely to have continued in the to-be reported quarter.

CRISPR Therapeutics has made rapid progress with the development of its lead pipeline candidate – CRISPR/Cas9 gene-editing therapy – CTX001. The candidate is currently being developed for treating sickle cell disease and transfusion-dependent beta thalassemia, in partnership with Vertex.

Earlier this week, Vertex increased its investment in its existing collaboration agreement with CRISPR Therapeutics for the manufacture and commercialization of CTX001.

As a result of the increased investment, CRISPR Therapeutics will receive an upfront payment of $900 million from Vertex and will also be entitled to a potential $200 million upon the first regulatory approval of CTX001. We expect management to provide more updates on this latest deal at the upcoming investors call.

CRISPR Therapeutics is also developing three gene-edited allogeneic cell therapy programs – chimeric antigen receptor T cell (CAR-T) candidates– CTX110, CTX120 and CTX130 – for the treatment of hematological and solid tumor cancers. Investors will be keen to get an update on the progress of these candidates during the upcoming earnings call.

The activities related to the development of CTX001 and other pipeline candidates are likely to have escalated operating expenses in the to-be-reported quarter.

Why a Likely Positive Surprise?

Our proven model predicts an earnings beat for CRISPR Therapeutics this season. 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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: CRISPR Therapeutics has an Earnings ESP of +7.43% as the Zacks Consensus Estimate is pegged at a loss of $1.48 while the Most Accurate Estimate is pegged at a loss of $1.37.

Zacks Rank: CRISPR Therapeutics has a Zacks Rank #3

CRISPR Therapeutics AG Price and Consensus

CRISPR Therapeutics AG Price and Consensus
CRISPR Therapeutics AG Price and Consensus


CRISPR Therapeutics AG price-consensus-chart | CRISPR Therapeutics AG Quote

Other Stocks to Consider

Here are some other large drug/biotech stocks that have the right combination of elements to beat on earnings this time around:

Axsome Therapeutics, Inc. AXSM with an Earnings ESP of +23.83% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Gilead Sciences GILD has an Earnings ESP of +6.00% and a Zacks Rank #3. The company is scheduled to report earnings on Apr 29.

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Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report

Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report

Axsome Therapeutics, Inc. (AXSM) : Free Stock Analysis Report

CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report

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