Editas Medicine (EDIT) posted a quarterly loss of $0.71 per share, compared with a Zacks Consensus estimate of $0.79. That compares to his loss of $0.74 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 10.13%. A quarter ago, the genome-editing company was expected to post a loss of $0.84 per share for him, but he actually lost $0.88, a surprise -4.76%.
In the last four quarters, the company has beaten consensus EPS estimates three times.
Zacks Medical – Editas, part of the Biomedical and Genetics industry, posted revenue of $9.85 million for the quarter ended March 2023, beating Zacks Consensus estimates by 97.42%. This compares to revenue of $6.77 million in the previous year. The company has beaten consensus earnings estimates three times in the past four quarters.
The sustainability of the immediate share price movement based on recent figures and future earnings projections depends primarily on management’s comments on the financial results.
Editas shares are down about 1.7% year-to-date, compared to a 5.8% gain in the S&P 500.
What’s next for Editas?
Editas have underperformed the market so far this year, but the question on the minds of investors is: what next for equities?
There is no easy answer to this important question, but one reliable metric that can help investors address this is a company’s earnings outlook. This includes not only the current consensus earnings projections for the next quarter, but also how those projections have changed recently.
Empirical studies show a strong correlation between short-term stock price movements and earnings forecast revision trends. Investors can track such revisions themselves or rely on proven valuation tools like Zacks Rank, which has an impressive track record of harnessing the power of revenue forecast revisions.
Prior to this earnings release, Editas estimate revision trend: Mixed. The magnitude and direction of the revision to estimates could change according to the company’s just-released earnings report, but the current situation translates to a rank #3 (hold) of Zak’s stock. Therefore, the stock is expected to perform in line with the market in the near future. A complete list of today’s #1 (Strong Buy) Zachs Stocks can be found here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change going forward. Current consensus EPS estimates are -$0.73 on next quarter earnings of $4.99 million and -$3.04 on earnings of $22.41 million this fiscal year.
Investors should be mindful of the fact that industry outlook can also have a significant impact on stock price performance. In terms of Zacks industry ranks, Medical-Biomedical and Genetics is currently in the top 39% of his Zacks industry of over 250. Our research shows that the top 50% of industries ranked by Zacks are more than twice as good as the bottom 50%.
Another stock in the same industry, Biofrontera Inc. (BFRI), has not yet reported results for the quarter ended March 2023. The results he will be announced on May 12th.
The company is expected to post a quarterly loss of $0.22 per share in its next report, representing a -175% change year-over-year. The quarterly consensus EPS estimate has not changed in the last 30 days.
Biofrontera Inc. revenue is expected to be $9.2 million, down 5.6% from the year-ago quarter.
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