Editas Medicine beats Q2 expectations on earnings and revenue
August 4, 2022
Trending News 🌥️
Editas Medicine ($NASDAQ:EDIT) posted a GAAP EPS of -$0.78, beating analysts’ estimates by $0.06. Revenue came in at $6.36M, beating estimates by $2.07M. This news is likely to have a positive impact on Editas Medicine’s stock price and earnings in the long term.
Market Reaction
On Wednesday, Editas Medicine stock opened at $17.5 and closed at $18.7, up 13.4% from the previous day’s close of $16.5. This came after the company released its earnings and revenue results for the second quarter of the year, which beat expectations.
However, media sentiment towards the company has been mostly negative, with many questioning its long-term prospects.
VI Analysis
Company’s fundamentals reflect its long term potential, below analysis on EDITAS MEDICINE are made simple by VI app. VI Star Chart shows that EDITAS MEDICINE is strong in asset, and weak in profitability, growth, dividend. EDITAS MEDICINE has an intermediate health score of 5/10 considering its cashflows and debt, is likely to safely ride out any crisis without the risk of bankruptcy. EDITAS MEDICINE is classified as ‘elephant’, a type of company that is rich in assets after deducting off liabilities. Although the company exhibits slower growth and do not pay out consistent dividends, at the right price, it is suitable for those who wants to invest in companies for their assets, also known as Deep Value Investing. Such company is deemed less risky as the intrinsic value is pegged to its assets.
Summary
Editas Medicine is a genomic editing company that uses CRISPR technology to develop treatments for serious diseases. Despite the positive news, there is some negative sentiment around Editas Medicine as the company has yet to bring any products to market and is still in the early stages of development. investors should be aware of the risks involved in investing in Editas Medicine, but the potential rewards could be significant if the company is successful in developing its technology.
