It has been about a month since the last earnings report for Editas Medicine (EDIT). Shares have added about 10.6% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Editas due for a pullback? 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' Earnings Beat in Q1, Revenues Improve Y/Y
Editas incurred a loss of 69 cents per share in the first quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of 78 cents but wider than the year-ago loss of 60 cents.
Collaboration, and other research and development revenues comprising the company’s total revenues came in at $5.7 million, substantially up from the year-ago quarter’s $2.1 million. However, the top line slightly missed the Zacks Consensus Estimate of $6 million.
Editas has no approved product in its portfolio at the moment. The company generates collaboration revenues, and other research and development revenues. Its collaboration revenues increased in the first quarter owing to higher collaboration payments recognized under its collaboration with Allergan (now part of AbbVie).
Quarter in Detail
Research and development expenses were $34.6 million, up 118.9% from the year-ago figure due to increased process and platform development costs, and costs related to an in-license deal inked in the quarter.
General and administrative expenses also inched up 1.7% to $17.8 million due to higher professional services costs.
How Have Estimates Been Moving Since Then?
Estimates revision followed a downward path over the past two months.
At this time, Editas 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.
Editas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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