It has been about a month since the last earnings report for Bluebird Bio (BLUE). Shares have added about 6.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Bluebird 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.
bluebird Q3 Earnings Top, Revenues Miss Estimates
bluebird bio, Inc. reported an adjusted loss of 92 cents per share (excluding restructuring charges) from continued operations for the third quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of $1.28. In the year-ago quarter, BLUE had posted a loss of $2.52 from continued operations.
Revenues from continued operations were $0.07 million, which missed the Zacks Consensus Estimate of $2 million.
In November 2021, BLUE completed the separation of the oncology business into an independent entity called 2seventy bio, Inc. We note that 2seventy bio has been listed on the Nasdaq since November 2021.
Quarter in Detail
Research and development expenses from continuing operations decreased to $53.1 million from $73.7 million a year ago.
Selling, general and administrative expenses from continuing operations were $33.4 million, down from $42.2 million in the year-ago quarter.
As of Sep 30, 2022, bluebird had cash, cash equivalents and marketable securities balance of approximately $141 million. In addition, the company ended the quarter with $45 million in restricted cash.
As of Sep 30, 2022, BLUE raised approximately $54.1 million in net proceeds through its At-the-Market (ATM) equity facility. Of this $54.1 million, $46.1 million in net proceeds were realized in the third quarter. The company expects its cash, cash equivalents and marketable securities, together with the anticipated release of $40 million of the restricted cash in the fourth quarter of 2022, to be sufficient to meet bluebird’s planned operating expenses and capital expenditure requirements into the second quarter of 2023.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -235.99% due to these changes.
At this time, Bluebird has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile 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.
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Bluebird 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
Bluebird belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Ultragenyx (RARE), has gained 12.9% over the past month. More than a month has passed since the company reported results for the quarter ended September 2022.
Ultragenyx reported revenues of $90.7 million in the last reported quarter, representing a year-over-year change of +11.1%. EPS of -$2.43 for the same period compares with -$1.08 a year ago.
Ultragenyx is expected to post a loss of $1.84 per share for the current quarter, representing a year-over-year change of -2.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Ultragenyx. Also, the stock has a VGM Score of F.
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