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CRISPR (CRSP) to Report Q4 Earnings: What's in the Cards?

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Zacks Equity Research
·4 min read
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We expect investors to focus on CRISPR Therapeutics AG’s CRSP progress with its lead gene-editing candidate CTX001 and other pipeline candidates when it reports fourth-quarter and full-year 2020 earnings results.

The company’s earnings surprise record has been dismal so far as its earnings missed estimates in three of the trailing four quarters and beat the same on the remaining occasion, the average beat being 278.85%. In the last reported quarter, CRISPR Therapeutics reported a negative earnings surprise of 12.82%.

Shares of CRISPR Therapeutics have rallied 9.6% so far this year compared with the industry’s increase of 8.6%.

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, CTX001. The candidate is an investigational ex-vivo CRISPR gene-edited therapy, which is currently being developed for treating sickle cell disease (“SCD”) and transfusion-dependent beta thalassemia (“TDT”), in partnership with Vertex.

In December 2020, the companies announced promising additional data on CTX001, which demonstrated a consistent and sustained response in treating patients with SCD and TDT. Treatment with CTX001 showed that all patients with TDT remained transfusion independent until the last follow-up, while all patients with SCD were free of vaso-occlusive crises through the last follow-up. More updates on the candidate’s development path are expected during the upcoming investors’ call.

Notably, both SCD and TDT have a significant unmet medical need, and if successfully developed and commercialized, the candidate can lend a huge boost to CRISPR Therapeutics’ prospects.

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 these candidates during the upcoming earnings call.

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

Earnings Whispers

Our proven model does not conclusively predict 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. Unfortunately, that is not the case here as you will see 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 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of $1.23 per share.

Zacks Rank: CRISPR Therapeutics currently carries a Zacks Rank #5 (Strong Sell).

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

Stocks to Consider

Here are a few stocks you may want to consider, as our model shows that these have the right combination of an earnings beat.

ACADIA Pharmaceuticals Inc. ACAD has an Earnings ESP of +6.03% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Seagen, Inc. SGEN has an Earnings ESP of +4.81% and a Zacks Rank #3. The company is scheduled to report earnings on Feb 11.

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Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report

CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report

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