Mirati (MRTX) Down 35.5% Since Last Earnings Report: Could It Rebound?

It has been about a month since Mirati (MRTX) last reported earnings. Shares have lost about 35.5% in that time, underperforming the S&P 500.

Will the recent negative trend continue until the next earnings release, or is Mirati due for a breakout? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at the most recent earnings report in order to better understand the important catalysts.

Mirati’s first quarter loss greater than expected, sales better

Mirati reported a first-quarter 2022 loss of $3.40 per share, wider than the Zacks Consensus Estimate of a loss of $3.37 and a year-ago loss of $2.67.

Mirati reported first-quarter collaborative revenues of $0.7 million, beating the Zacks Consensus Estimate of zero revenue. The Management Board did not record any revenues in the corresponding quarter of last year.

Quarter in detail

Research and development expenses increased 25.9% from the prior-year quarter level to $131.0 million due to increases in candidate development expenses, preclinical and early discovery activities and higher employee-related expenses.

General and administrative expenses increased 90.3% from year-ago quarter levels to $54.0 million due to increased professional services expenses and higher employee costs in the quarter.

Cash, cash equivalents and short-term investments were $1.3 billion at March 31, 2022, compared to $1.5 billion at December 31, 2021.

How have estimates changed since then?

It turns out that new estimates have been trending upwards over the past month.

As a result of these changes, the consensus estimate moved by 6.59%.

VGM results

Right now, Mirati has a weak Growth Score of F, but its Momentum Score is doing much better at A. However, the stock is rated F on the value side, putting it in the fifth quintile of this investing strategy.

Overall, the company’s overall VGM score is F. If you’re not focused on one strategy, this score should interest you.

Perspectives

Estimates for the stock are trending upwards, and the scale of these revisions looks promising. Notably, Mirati carries a Zacks Rank #3 (Hold). We expect a linear rate of return on the stock over the next few months.

Industry player performance

Mirati is part of the Zacks Medical – Biomedical & Genetics industry. Over the past month, shares of the same industry Repligen (RGEN) have gained 8.7%. More than a month ago, the company published its results for the quarter ended March 2022.

In the most recent quarter, Repligen reported revenue of $206.4 million, representing a year-over-year change of +44.5%. EPS of $0.92 for the same period compared to $0.68 a year ago.

For the current quarter, Repligen is expected to report earnings per share of $0.72, representing a change of -8.9% from the prior-year quarter. The Zacks Consensus Estimate has remained unchanged over the past 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Repligen. The stock also has a VGM Rating of D.

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