A month has gone by since the last earnings report for Blueprint Medicines (BPMC). Shares have lost about 18.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Blueprint Medicines due for a breakout? 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.
Blueprint Medicines Q2 Loss Widens, Sales Top Mark
Blueprint Medicinesincurred a loss of $2.04 per share in the second quarter of 2019, wider than the Zacks Consensus Estimate of a loss of $1.92 and also the year-ago quarter’s loss of 62 cents.
Collaboration revenues, comprising the company’s total revenues, came in at $5.1 million, down 87.7% year over year. However, the top line surpassed the Zacks Consensus Estimate of $3 million.
Blueprint Medicines has no approved product in its portfolio at the moment. The revenues generated by the company are all related to its partnership with Roche and CStone Pharmaceuticals for the development and commercialization of its pipeline candidates.
Quarter in Detail
In the quarter, research and development expenses were $87.1 million, up 48.6% from the year-ago period’s figure, mainly owing to higher spending associated with the lead candidates’ development and higher personnel costs.
General and administrative expenses were $21.9 million, up 78% year over year on account of higher personnel costs, professional fees and pre-commercial planning activities.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -6.87% due to these changes.
Currently, Blueprint Medicines has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth 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.
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Blueprint Medicines has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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