CRISPR (CRSP) to Report Q4 Earnings: What's in the Cards?

We expect investors to focus on the sales numbers of CRISPR Therapeutics AG’s CRSP newly approved gene therapy, Casgevy (exa-cel), when the company reports fourth-quarter and full-year 2023 results.

Factors to Note

CRISPR Therapeutics’ top line comprises grants and collaboration revenues from its partnership with large-cap biotech Vertex Pharmaceuticals VRTX.

Vertex leads global development and commercialization of Casgevy under the terms of a 60/40 profit sharing agreement with CRISPR Therapeutics.

Casgevy is the first marketed product in CRISPR Therapeutics’ portfolio. The commercial launch of Casgevy is currently underway in the United States, United Kingdom, Saudi Arabia and Bahrain.

Shares of CRISPR Therapeutics have rallied 39.5% in the past year against the industry’s decline 12.8%.

Zacks Investment ResearchImage Source: Zacks Investment Research

CRSP did not record any collaboration revenues in the last reported quarter, a trend that most likely continued in the to-be-reported quarter.

CRISPR Therapeutics is developing next-generation CAR-T therapy candidates — CTX112 (targeting CD19-positive B-cell malignancies) and CTX131 (targeting relapsed or refractory solid tumors) in separate phase I/II studies.

Updates related to the progress on the pipeline candidates are expected on the upcoming earnings call. Activities related to developing CRSP’s pipeline candidates are likely to have escalated operating expenses in the to-be-reported quarter.

Recent Developments

In the United States, the FDA approved Casgevy for the sickle cell disease (SCD) indication in December 2023 and for the transfusion-dependent beta thalassemia (TDT) indication in January 2024. Casgevy secured its first-ever approval/authorization in the United Kingdom in November 2023. The European Commission granted conditional marketing authorization to Casgevy for the treatment of SCD and TDT on Feb 13.

We expect management to provide more updates on the European launch activities for Casgevy as well as announce the initial sales numbers of the drug on the upcoming earnings call.

Earnings Surprise History

CRISPR Therapeutics has an impressive earnings surprise history, beating estimates in each of the trailing four quarters, the average surprise being 45.74%. In the last reported quarter, CRISPR Therapeutics’ earnings beat estimates by 28.79%.

CRISPR Therapeutics AG Price and EPS Surprise

CRISPR Therapeutics AG Price and EPS Surprise

CRISPR Therapeutics AG price-eps-surprise | CRISPR Therapeutics AG Quote

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for CRISPR Therapeutics this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: CRISPR Therapeutics has an Earnings ESP of -7.70% as the Most Accurate Estimate is pegged at a loss of 43 cents per share, wider than the Zacks Consensus Estimate of a loss of 39 cents.

Zacks Rank: CRISPR Therapeutics currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are a few stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Intellia Therapeutics, Inc. NTLA has an Earnings ESP of +31.10% and a Zacks Rank #2.

Intellia Therapeutics’ stock has plunged 36.7% in the past year. NTLA beat earnings estimates in two of the last four quarters, met the same once and missed on the remaining occasion. Intellia Therapeutics delivered an earnings surprise of 5.04%, on average.

Alkermes, Inc. ALKS has an Earnings ESP of +29.87% and a Zacks Rank #3.

Alkermes’ stock has risen 0.7% in the past year. ALKS beat earnings estimates in each of the last four quarters. Alkermes delivered an earnings surprise of 93.34%, on average. ALKS will report its fourth-quarter results on Feb 15.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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