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Why Is Beam Therapeutics (BEAM) Up 10.1% Since Last Earnings Report?

A month has gone by since the last earnings report for Beam Therapeutics Inc. (BEAM). Shares have added about 10.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Beam Therapeutics 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 drivers.

Beam Q1 Loss Narrows, Revenues Lag Estimates

Beam incurred a loss of $1.21 per share in the first quarter of 2024, narrower than the Zacks Consensus Estimate of a loss of $1.45. The company had recorded a loss of $1.33 per share in the year-ago quarter.

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Total revenues, comprising license and collaboration revenues, came in at $7.4 million in the first quarter compared with $24.2 million in the year-ago period. The top line missed the Zacks Consensus Estimate of $14 million.

Quarter in Detail

Research and development expenses totaled $84.8 million in the first quarter, down almost 14.8% from the year-ago quarter’s level.

General and administrative expenses totaled $26.7 million, increasing around 14.1% year over year.

As of Mar 31, 2024, BEAM had cash, cash equivalents and marketable securities worth $1.1 billion compared with $1.2 billion as of Dec 31, 2023.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates.

The consensus estimate has shifted 21.52% due to these changes.

VGM Scores

At this time, Beam Therapeutics has a poor Growth Score of F, 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 bottom 20% 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.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Beam Therapeutics 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

Beam Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Biogen Inc. (BIIB), has gained 7.7% over the past month. More than a month has passed since the company reported results for the quarter ended March 2024.

Biogen reported revenues of $2.29 billion in the last reported quarter, representing a year-over-year change of -7%. EPS of $3.67 for the same period compares with $3.40 a year ago.

Biogen is expected to post earnings of $3.98 per share for the current quarter, representing a year-over-year change of -1%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.3%.

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

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Beam Therapeutics Inc. (BEAM) : Free Stock Analysis Report

Biogen Inc. (BIIB) : Free Stock Analysis Report

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