Why Is CRISPR Therapeutics (CRSP) Up 12% Since Last Earnings Report?

Core Viewpoint - CRISPR Therapeutics AG has experienced a 12% increase in share price over the past month, outperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1]. Financial Performance - In Q1 2024, CRISPR Therapeutics reported a loss of $1.43 per share, which was narrower than the Zacks Consensus Estimate of a loss of $1.63, compared to a loss of $0.67 per share in the same period last year [2]. - The company's total revenues were $0.5 million, significantly missing the Zacks Consensus Estimate of $8.3 million, and down from $100 million in the prior year, which was entirely from an upfront payment from Vertex [3]. Expense Analysis - Research and development expenses decreased by 24% year-over-year to $76.2 million, attributed to reduced external research and manufacturing costs [4]. - General and administrative expenses fell by 20% to $18.0 million, driven by lower employee-related and stock-based compensation expenses [4]. - Collaboration expenses rose by 11% year-over-year to $47.0 million, primarily due to increased commercial and manufacturing costs [4]. Cash Position - As of March 31, 2024, the company had cash, cash equivalents, marketable securities, and accounts receivables totaling $2.1 billion, up from $1.7 billion as of December 31, 2023, mainly due to proceeds from a direct offering and a $200 million milestone payment from Vertex [5]. Market Sentiment - Recent estimates for CRISPR Therapeutics have trended upward, with a consensus estimate shift of 18.14% [6]. - The company holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [8]. Industry Comparison - CRISPR Therapeutics operates within the Zacks Medical - Biomedical and Genetics industry, where Biogen Inc. has seen a 4.2% gain over the past month, reporting revenues of $2.29 billion, a year-over-year decline of 7% [9]. - Biogen's expected earnings for the current quarter are $3.98 per share, reflecting a 1% decrease from the previous year, with a Zacks Rank 3 (Hold) and a VGM Score of B [10].