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CRISPR Therapeutics AG (CRSP) Up 20.5% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for CRISPR Therapeutics AG (CRSP). Shares have added about 20.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is CRISPR Therapeutics AG due for a pullback? 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.

Q3 Loss Narrower Than Expected

CRISPR Therapeutics reported a net loss per share of $1.41 in the third quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of $1.98. In the year-ago period, the company had posted a loss of $2.24 per share.

In the absence of any marketed product, CRISPR Therapeutics did not record any revenues during the quarter. The Zacks Consensus Estimate for total revenues stood at $20.7 million. In the year-ago quarter, revenues were less than $0.1 million.

Quarter in Detail

For the reported quarter, research and development expenses fell 22% year over year to $90.7 million, owing to reduced variable external research and manufacturing costs.

Also, general and administrative expenses declined 32% to $18.3 million due to a fall in external professional costs.

Collaboration expenses in the quarter reached $23.4 million, down 40% year over year. The downside can be attributed to the fact that the company reached the $110.3 million deferral limit on costs related to the exa-cel program in third-quarter 2023. Last year, this limit was not reached until fourth-quarter 2022.

As of Sep 30, 2023, CRISPR Therapeutics had cash, cash equivalents, marketable securities and accounts receivables of $1.74 billion compared with $1.84 billion as of Jun 30, 2023.

How Have Estimates Been Moving Since Then?

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

The consensus estimate has shifted 57.69% due to these changes.

VGM Scores

Currently, CRISPR Therapeutics AG 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

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise CRISPR Therapeutics AG has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

CRISPR Therapeutics AG belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Moderna (MRNA), has gained 6.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.

Moderna reported revenues of $1.83 billion in the last reported quarter, representing a year-over-year change of -45.6%. EPS of -$1.39 for the same period compares with $2.53 a year ago.

For the current quarter, Moderna is expected to post a loss of $1.33 per share, indicating a change of -136.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -7.5% over the last 30 days.

Moderna has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.

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