Why Is Beam Therapeutics Inc. (BEAM) Up 29.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Beam Therapeutics Inc. (BEAM). Shares have added about 29.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Beam Therapeutics Inc. 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.
Beam’s Q3 Earnings & Revenues Beat Estimates
Beam incurred a loss of $1.22 per share in the third quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of $1.37. The company had recorded a loss of $1.56 per share in the year-ago quarter.
Beam’s total revenues, comprising license and collaboration revenues, came in at $17.2 million in the third quarter compared with $15.8 million in the year-ago period. The top line surpassed the Zacks Consensus Estimate of $14 million.
Quarter in Detail
Research and development expenses amounted to $100 million in the third quarter, up almost 17.2% from the year-ago quarter’s level.
General and administrative expenses totaled $25.4 million, increasing around 16.5% year over year.
As of Sep 30, 2023, BEAM had cash, cash equivalents and marketable securities worth $1 billion compared with $1.1 billion as of Jun 30, 2023.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 13.91% due to these changes.
VGM Scores
Currently, Beam Therapeutics Inc. 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.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Beam Therapeutics Inc. 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 Inc. belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Exelixis (EXEL), has gained 4.6% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Exelixis reported revenues of $471.92 million in the last reported quarter, representing a year-over-year change of +14.6%. EPS of $0.10 for the same period compares with $0.31 a year ago.
Exelixis is expected to post earnings of $0.30 per share for the current quarter, representing a year-over-year change of +1100%. Over the last 30 days, the Zacks Consensus Estimate has changed +3.4%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Exelixis. Also, the stock has a VGM Score of B.
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Beam Therapeutics Inc. (BEAM) : Free Stock Analysis Report
Exelixis, Inc. (EXEL) : Free Stock Analysis Report
