CRISPR Therapeutics Stock Before Q4 Earnings: To Buy or Not to Buy?

Core Viewpoint - CRISPR Therapeutics is set to report its fourth-quarter and full-year 2024 earnings, with expectations of a sales figure of $10.13 million and a loss of$1.15 per share, while the loss per share estimate for 2025 has increased from $5.17 to$5.21 in the last month [1][11]. Earnings Performance - The company has shown a decent performance over the past four quarters, beating earnings estimates in three out of four quarters, with an average surprise of 100.64% [4][5]. - In the last reported quarter, CRISPR's earnings exceeded expectations by 24.06% [4]. Earnings Estimates - CRISPR Therapeutics has an Earnings ESP of +8.09%, with the most accurate estimate at a loss of $1.06 per share compared to the Zacks Consensus Estimate of a loss of$1.15 [7][6]. Revenue Drivers - The company's revenue is currently bolstered by grants and collaboration revenues from its partnership with Vertex Pharmaceuticals [9]. - The recently approved gene therapy, Casgevy, is expected to contribute $10 million in sales for CRISPR in the fourth quarter, marking the first marketed product in its portfolio [10][11]. Pipeline Development - CRISPR is advancing its pipeline with two next-generation CAR-T therapy candidates, CTX112 and CTX131, currently in phase I/II studies, along with two in-vivo candidates, CTX310 and CTX320, in separate phase I clinical studies [12][13]. Stock Performance and Valuation - Over the past year, CRISPR's stock has declined by 41%, underperforming the industry and broader market indices [15][16]. - The company's shares trade at a price/book ratio of 1.79, which is lower than the industry average of 3.71, indicating attractive valuation [18]. Investment Thesis - With the approval of Casgevy, CRISPR has overcome a significant hurdle regarding revenue generation, although the treatment process may delay revenue recognition [20]. - The partnership with Vertex provides a competitive advantage over rivals, as CRISPR is the first to market an approved CRISPR-based therapy [21]. Future Outlook - The upcoming earnings report is anticipated to be a major catalyst for CRISPR, as it will be the first quarter to record revenues from Casgevy, providing insights into market demand and potential [23].