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Q3 Earnings Preview for Sangamo Therapeutics (NasdaqGS:SGMO)

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Sangamo Therapeutics, Inc. (NasdaqGS:SGMO) is scheduled to report Q3 earnings results after markets close for trading on November 4, 2020.

The company is expected to report earnings of -$0.25/share on revenue of $25.11 million. The consensus earnings per share (EPS) of -$0.25/share is based on a poll of 8 analysts and represents a decline in eps of -4.6% over the same quarter last year, when the company reported earnings of -$0.24/share.

The revenue forecast of $25.11 million based on a poll of 8 analysts implies a year-over-year (YoY) growth in revenue of 14.4%. Last year the company reported $21.958 million in revenue for the quarter.

Expected to report EPS of -$0.25/share for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $25.11 $21.96 14.4%
EPS -$0.25 -$0.24 -4.6%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 2 quarters.

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

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 -$0.34 -$0.26 22.6% Beat
Q1, 2020 -$0.35 -$0.37 -5.7% Missed
Q4, 2019 -$0.33 $0.04 112.0% Beat
Q3, 2019 -$0.34 -$0.24 28.9% Beat
Q2, 2019 -$0.35 -$0.26 24.9% Beat
Q1, 2019 -$0.24 -$0.41 -69.4% Missed
Q4, 2018 -$0.23 -$0.18 22.4% Beat
Q3, 2018 -$0.18 -$0.13 27.0% Beat

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 reacted by increasing 2.4%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 5, 2020 $11.44 $11.72 2.4% Increase
May 11, 2020 $8.70 $9.79 12.5% Increase
February 28, 2020 $6.67 $8.53 28.0% Increase
November 6, 2019 $9.46 $9.34 −1.3% Decline

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 −3.27, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.27 implies a 0.1% chance of earnings manipulation.

Fundamentals And Technical Analysis

Sangamo Therapeutics, Inc. is currently trading at $10.34/share, down −2.5% for the day. The company is trading at approximately 78.3% of its 52-week high of $13.20/share. The company’s stock price is down −11.8% since the last earnings report and down −4.6% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 42.68 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:SGMO Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −14.35 and a forward P/E multiple of −9.50.

Sangamo Therapeutics, Inc.’s current share price also implies a price-to-book (P/B) multiple of 2.85. 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) $10.34
P/E Ratio −14.3x
P/E Ratio (Fwd) −9.5x
PEG Ratio −1.0
Total Debt / Total Capital 2.8%
Levered Free Cash Flow $63.804 million
EV / EBITDA −7.9x

Finbox

Sangamo Therapeutics, Inc. is a small-cap stock with a market capitalization of $1.458 billion and a total enterprise value of $835.3 million. The company operates in the Healthcare sector and the Biotechnology industry.

Sangamo Therapeutics, Inc., a biotechnology company, focuses on translating science into genomic medicines that transform patients’ lives using platform technologies in gene therapy, cell therapy, genome editing, and genome regulation. The company’s zinc finger proteins (ZFPs) could be engineered to make zinc finger nucleases (ZFNs), proteins that could be used to modify DNA sequences by adding or knocking out specific genes or genome editing; and ZFP transcription factors (ZFP TFs) proteins that can be used to increase or decrease gene expression. Its therapeutic products that are in Phase I/II clinical trial include SB-525 for the treatment of hemophilia A; ST-920 gene therapy for Fabry disease; ST-101 gene therapy for phenylketonuria; ST-400 and BIVV-003 for the treatment of hemoglobinopathies; SB-913 for the treatment of Mucopolysaccharidosis type II; SB-318 for the treatment of Mucopolysaccharidosis type I; and SB-FIX for the treatment of hemophilia B. The company has collaborative and strategic partnerships with Biogen Inc.; Kite Pharma, Inc.; Pfizer Inc.; Sanofi Genzyme; Shire International GmbH; Dow AgroSciences LLC; Sigma-Aldrich Corporation; Genentech, Inc.; Open Monoclonal Technology, Inc.; F. Hoffmann-La Roche Ltd and Hoffmann-La Roche Inc.; and California Institute for Regenerative Medicine. The company was formerly known as Sangamo BioSciences, Inc. and changed its name to Sangamo Therapeutics, Inc. in January 2017. Sangamo Therapeutics, Inc. was founded in 1995 and is headquartered in Brisbane, California.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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