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Why Is Blueprint Medicines (BPMC) Down 21.6% Since Last Earnings Report?

Zacks Equity Research

It has been about a month since the last earnings report for Blueprint Medicines (BPMC). Shares have lost about 21.6% 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 its most recent earnings report in order to get a better handle on the important catalysts.

Blueprint Medicines Q4 Loss Narrows, Revenues Top Mark

Blueprint Medicines incurred a loss of $1.35 per share in the fourth quarter of 2019, narrower than the Zacks Consensus Estimate of a loss of $1.71 and also the year-ago quarter’s loss of $1.83.

Collaboration revenues comprising the company’s total revenues came in at $51.5 million, reflecting a significant rise year over year. The top line also comprehensively surpassed the Zacks Consensus Estimate of $24 million.

Revenues generated by Blueprint Medicines are all related to its partnership with Roche, CStone Pharmaceuticals and Clementia Pharmaceuticals for the development and commercialization of its pipeline candidates.

Quarter in Detail

Research and development expenses were $88.6 million, up 25.7% from the year-ago figure, mainly due to higher spending associated with the lead candidates’ development and increased personnel costs.

General and administrative expenses were $32.3 million, up 137.5% year over year on account of higher personnel fees, infrastructure costs and other commercial costs.

Blueprint Medicines had cash, cash equivalents and marketable securities of $548 million as of Dec 31, 2019, lower than the sequential quarter’s level of $594.5 million.

How Have Estimates Been Moving Since Then?

Estimates review followed a downward path over the past two months. The consensus estimate has shifted -5.94% due to these changes.

VGM Scores

Currently, Blueprint Medicines has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

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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