CRISPR Therapeutics AG (NASDAQ:CRSP) is a leading biotechnology company focused on developing transformative gene-based medicines. The company is renowned for its pioneering work in CRISPR/Cas9 gene-editing technology, which aims to treat serious diseases. CRSP operates in the competitive Zacks Medical - Biomedical and Genetics industry, where it faces competition from other biotech firms like Editas Medicine and Intellia Therapeutics.
On February 19, 2025, CRSP reported an earnings per share (EPS) of -$0.44, significantly better than the estimated EPS of -$1.15. This marks a notable improvement from the previous year's earnings of $1.10 per share, which were bolstered by higher collaboration revenues. The company achieved an earnings surprise of 61.74%, continuing its trend of surpassing consensus EPS estimates in three of the last four quarters.
CRSP's revenue for the quarter was $35.69 million, exceeding the estimated $8.1 million by 252.5%. However, this is a decline from the $201.21 million in revenue reported a year ago, largely due to collaboration revenues from Vertex Pharmaceuticals related to the approval of Casgevy for two blood disorder indications. Despite the revenue drop, the commercial launch of Casgevy, the first CRISPR-based gene therapy, is progressing well.
The company's stock price has surged by over 25% in the past week, driven by the better-than-expected fourth-quarter results and a rating upgrade from Evercore ISI. The analyst upgraded CRSP's rating from "In Line" to "Outperform," significantly increasing the target price by 65% to $99. This reflects positive expectations for the company's clinical programs and future growth potential.
CRSP's financial metrics reveal a mixed picture. The company has a negative price-to-earnings (P/E) ratio of approximately -12.03, indicating it is not currently profitable. However, it maintains a low debt-to-equity ratio of 0.12, suggesting a conservative use of debt. Additionally, CRSP boasts a strong current ratio of 22.07, indicating excellent short-term liquidity, which is crucial for sustaining operations and funding research and development.
