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Global Blood (GBT) Up 15.4% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Global Blood Therapeutics (GBT). Shares have added about 15.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Global Blood 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 drivers.

Global Blood's Q4 Earnings Miss Mark, Revenues Rise Y/Y

Global Blood incurred a loss of $1.36 per share in fourth-quarter 2021, wider than the Zacks Consensus Estimate of a loss of $1.14. In the year-ago quarter, the company had reported a loss of $1.00 per share.

The company’s revenues of $56.1 million, comprising solely of Oxbryta sales, were almost in line with the Zacks Consensus Estimate of $56 million. Global Blood had generated $41.3 million in product sales in the year-ago quarter.

Quarter in Details

Oxbryta sales increased 8% sequentially in the fourth quarter, owing to higher demand from existing and new patients. The company recorded around 800 new prescriptions of Oxbryta in the fourth quarter despite the ongoing COVID-19 pandemic.

Research and development expenses in the reported quarter were $59 million, up 43.5% year over year, primarily attributable to higher external costs related to the company’s preclinical programs and ongoing studies on inclacumab.

Selling, general and administrative expenses were $78.9 million in the reported quarter, up 34.6% year over year due to higher employee-related costs, and increased professional and consulting services’ cost.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

The consensus estimate has shifted -19.89% due to these changes.

VGM Scores

At this time, Global Blood has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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 indicates a downward shift. Notably, Global Blood has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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