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Intellia Therapeutics (NasdaqGM:NTLA) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

Intellia Therapeutics, Inc. (NasdaqGM:NTLA) is scheduled to report Q3 earnings results on November 5, 2020.

The company is expected to report earnings of -$0.57/share on revenue of $14.947 million. The consensus earnings per share (EPS) of -$0.57/share is based on a poll of 10 analysts and represents a decline in eps of -15.7% over the same quarter last year, when the company reported earnings of -$0.49/share.

The revenue forecast of $14.947 million based on a poll of 9 analysts implies a year-over-year (YoY) growth in revenue of 40.8%. Last year the company reported $10.616 million in revenue for the quarter.

Expected to report EPS of -$0.57/share for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $14.95 $10.62 40.8%
EPS -$0.57 -$0.49 -15.7%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 3 quarters.

What are your expectations from Intellia Therapeutics, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 -$0.67 -$0.61 9.5% Beat
Q1, 2020 -$0.47 -$0.63 -33.1% Missed
Q4, 2019 -$0.56 -$0.57 -2.2% Missed
Q3, 2019 -$0.61 -$0.49 19.6% Beat
Q2, 2019 -$0.59 -$0.56 5.0% Beat
Q1, 2019 -$0.57 -$0.49 13.9% Beat
Q4, 2018 -$0.54 -$0.43 20.8% Beat
Q3, 2018 -$0.49 -$0.53 -8.5% Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price did not react much to the update.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 6, 2020 $19.65 $19.83 0.9% Increase
May 7, 2020 $13.85 $13.64 −1.5% Decline
February 27, 2020 $12.29 $13.35 8.6% Increase
October 31, 2019 $11.77 $13.60 15.5% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.45, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.45 implies a 0.0% chance of earnings manipulation.

Fundamentals And Technical Analysis

Intellia Therapeutics, Inc. is currently trading at $23.94/share, down −4.0% for the day. The company is trading at approximately 88.4% of its 52-week high of $27.07/share. The company’s stock price is up 20.7% since the last earnings report and down −3.8% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 48.38 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGM:NTLA Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −12.11 and a forward P/E multiple of −11.03.

Intellia Therapeutics, Inc.’s current share price also implies a price-to-book (P/B) multiple of 4.00. The following table summarizes some other key fundamental ratios:

Data as of November 1, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $23.94
P/E Ratio −12.1x
P/E Ratio (Fwd) −11.0x
PEG Ratio 0.8
Total Debt / Total Capital 1.6%
Levered Free Cash Flow -$41.439 million
EV / EBITDA −8.6x

Finbox

Intellia Therapeutics, Inc. is a small-cap stock with a market capitalization of $1.406 billion and a total enterprise value of $992.6 million. The company operates in the Healthcare sector and the Biotechnology industry.

Intellia Therapeutics, Inc., a genome editing company, focuses on the development of therapeutics. It utilizes a biological tool known as the Clustered, Regularly Interspaced Short Palindromic Repeats/CRISPR associated 9 (CRISPR/Cas9) system. The company develops in vivo programs focusing on liver diseases, including transthyretin amyloidosis and hereditary angioedema, as well as other research programs comprising primary hyperoxaluria Type 1, alpha-1 antitrypsin deficiency, and Hemophilia B. Its ex vivo pipeline includes proprietary programs focused on developing engineered cell therapies to treat various oncological and autoimmune diseases; partnered programs focused on chimeric antigen receptor T cells and hematopoietic stem cells; and acute myeloid leukemia. Intellia Therapeutics, Inc. has license and collaboration agreements with Novartis Institutes for BioMedical Research, Inc.; Regeneron Pharmaceuticals, Inc.; Ospedale San Raffaele; and GEMoaB Monoconals GmbH. The company was formerly known as AZRN, Inc. and changed its name to Intellia Therapeutics, Inc. in July 2014. Intellia Therapeutics, Inc. was founded in 2014 and is headquartered in Cambridge, Massachusetts.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

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