Why Is Beam Therapeutics (BEAM) Down 22.1% Since Last Earnings Report?
It has been about a month since the last earnings report for Beam Therapeutics Inc. (BEAM). Shares have lost about 22.1% 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 its most recent earnings report in order to get a better handle on the important drivers.
Beam Q4 Earnings & Revenues Beat Estimates
Beam reported earnings of $1.73 per share for the fourth quarter of 2023 against the Zacks Consensus Estimate of a loss of $1.15. The company had recorded a loss of 54 cents per share in the year-ago quarter.
Beam’s total revenues, comprising license and collaboration revenues, came in at $316.2 million in the fourth quarter compared with $20 million in the year-ago period. The top line surpassed the Zacks Consensus Estimate of $17 million.
Quarter in Detail
Research and development expenses amounted to $140 million in the fourth quarter, up almost 62.2% from the year-ago quarter’s level.
General and administrative expenses totaled $43.2 million, increasing around 90.7% year over year.
As of Dec 31, 2023, Beam had cash, cash equivalents and marketable securities worth $1.2 billion compared with $1.0 billion as of Sep 30, 2023.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -34.31% due to these changes.
VGM Scores
Currently, Beam Therapeutics has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, 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 indicates a downward shift. 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, BioMarin Pharmaceutical (BMRN), a stock from the same industry, has gained 0.2%. The company reported its results for the quarter ended December 2023 more than a month ago.
BioMarin reported revenues of $646.21 million in the last reported quarter, representing a year-over-year change of +20.2%. EPS of $0.49 for the same period compares with $0.36 a year ago.
For the current quarter, BioMarin is expected to post earnings of $0.61 per share, indicating a change of +1.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for BioMarin. Also, the stock has a VGM Score of D.
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