Editas Medicine, Inc. (NASDAQ:EDIT) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. In addition to smashing expectations with revenues of US$63m, Editas Medicine delivered a surprise statutory profit of US$0.12 per share, a notable improvement compared to analyst expectations of a loss. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. Readers will be glad to know we’ve aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Editas Medicine after the latest results.
Check out our latest analysis for Editas Medicine
Following the recent earnings report, the consensus from seven analysts covering Editas Medicine is for revenues of US$22.2m in 2021, implying a concerning 32% decline in sales compared to the last 12 months. Per-share losses are expected to explode, reaching US$3.29 per share. Before this latest report, the consensus had been expecting revenues of US$23.8m and US$3.39 per share in losses. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for next year.
The consensus price target fell 8.7% to US$38.11, with the dip in revenue estimates clearly souring sentiment, despite the forecast reduction in losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Editas Medicine at US$60.00 per share, while the most bearish prices it at US$14.00. So we wouldn’t be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that sales are expected to slow, with a forecast revenue decline of 32%, a significant reduction from annual growth of 42% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 20% next year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining – Editas Medicine is expected to lag the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Unfortunately,
On MSNBC’s election night coverage Tuesday night, political analyst and Democratic strategist James Carville was full of optimism as he reassured the Democratic party that, despite President Donald Trump leading in many battleground states, everything was “going to be fine.”
“Every Democrat, just put the razor blades and the Ambien back in the medicine cabinet. We’re going to be fine,” stated Carville.
Carville went on saying that “Pennsylvania looks really good, we’re going to be fine in Wisconsin, I think a big surprise here is Georgia.”
Similar to Carville’s statement, former Vice President and Democratic presidential candidate Joe Biden made a statement after midnight saying, “we’re going to win this,” as it became clear that the presidential race was too close to call late Tuesday night. While the nation went to bed preparing to wait it out, possibly until Friday, Carville continued to express his optimism.
“I hoped that we would know earlier than we did. I think we’re going to be just fine. I’m very optimistic,” stated Carville. He continued, “People are rerunning the numbers, and we just have to hang in there, and we’re going to win this thing. I promise you. But just, you know, stay up the night, watch the returns. We’re doing a good job.”
“I do not have defeat on my mind. I have really good reasons to think that we’re going to be fine. I’ve talked to a lot of people tonight. It might take a little bit longer than we wanted, but everybody just hang in there. America’s coming back and I feel good about where we are,” assured Carville.
Finally, Carville told MSNBC’s Brian Williams and Rachel Maddow, “I’ve waited four years for this. I can wait another four days.”
MSNBC’s election night coverage aired Tuesday, November 3rd at 7 p.m. on MSNBC.
Watch CNN’s panel exploding after Trump makes unfounded claims about mail-in ballots in Pennsylvania:
Read more from Yahoo Entertainment:
The National Investigation Agency (NIA) has named a dentist and a computer applications specialist as key persons involved in sending a group of six to seven youths from Bengaluru to Syria in the 2013-14 period to join the Islamic State.
The NIA registered its case on September 19 under the Unlawful Activities (Prevention) Act or UAPA and named dentist Muhammad Tauqir Mahmood (29) and computer applications specialist Zuhaib Hameed alias Shakeel Manna (28), both of whom earlier lived in Bengaluru but are currently reportedly based in Saudi Arabia.
The two are alleged to have built contacts with IS through a schoolmate from Saudi Arabia — where Tauqir and another NIA suspect, Shihab, studied during their school years.
The existence of the group who travelled to Syria came to light after the August 17 arrest of Abdur Rahman, a 28-year-old ophthalmologist from Bengaluru, on charges of conspiring with a Kashmiri man arrested in Delhi in March, for alleged links to an Islamic State of Khorasan Province (ISKP) unit in India. The agency’s investigation of Abdur Rahman revealed that he had travelled to Syria in 2013-14 with the assistance of Tauqir and Hameed.
As part of its investigations, the NIA on October 7 arrested business analyst Ahamed Abdul Cader (40) from Chennai and rice merchant Irfan Nasir (33) in Bengaluru for allegedly funding “the Bengaluru-based ISIS module”.
“Accused Ahamed Abdul Cader, Irfan Nasir and their associates played a very significant role in radicalization of the members of the group and arranged funds through donations and own sources for visit of accused Abdur Rahman and other Muslim youth of Bengaluru to Syria to join ISIS. Two of such youth got killed in Syria,” the NIA said after the October 7 arrests.
The two killed in Syria have been identified as Faiz Masood, an MBA degree-holder, and Abdul Subhan, who was working in Yemen before joining IS.
Investigations by the NIA and other agencies have revealed that an orthopaedic doctor and an aeronautical engineer were among the youths who travelled to Syria in 2013-14. Both are reported to have returned to India within a short span of their stay in Syria after witnessing heavy violence at close quarters.
A senior police officer said, “There seem to have been many youths who travelled from Bengaluru to Syria at the time. Some returned to India after short visits while some seem to have died there. The identities of all those who went are being unearthed now.”
Investigations since the arrest of Abdur Rahman and the questioning of two of his associates who travelled to Syria have revealed that they met Masood, one of the youths killed, in a town called Atme when they crossed over from Turkey in 2013.
The fitness industry has changed, and Peloton (PTON) stands to reap the benefits. Truist Securities’ Youssef Squali recently surveyed 1,500 consumers to gain insights on exercise habits and related preferences, with the findings only reaffirming the analyst’s confidence in PTON.
Throughout most of the U.S., gyms have reopened, but consumers aren’t hitting the locker room. Still nervous about going back to fitness centers, only 45% of respondents have been to a gym or an exercise class since the onset of the pandemic. Additionally, 33% are visiting the gym less frequently than before COVID-19.
Going forward, most survey participants noted that their longer-term exercise plans will incorporate a larger at-home component. Nearly 60% of gym-goers plan to cancel at least one gym membership as a result of COVID, including 33% who have already done so, while 55% plan to exercise at home more often even if a vaccine is widely-available.
Calling the number of gym-goers that have already canceled at least one membership “striking,” Squali thinks it could “portend greater pressure for gyms ahead.”
Expounding on this, the analyst stated, “This also suggests that the shift towards at-home fitness is likely to continue into 2021 and beyond. We believe many gym-goers, when faced with the reality of not being able to visit their fitness centers for an indefinite amount of time, have experienced and warmed to the benefits of working out from home (convenience, cost, time savings, etc.). We anticipate that this dynamic will outlive COVID.” To this end, Squali sees this trend as a tailwind for PTON.
Of the 1,169 respondents who worked out at least once a month, 54% made a fitness equipment or services related purchase for home use. It should be noted that out of this group, 40% had no plans to make an at-home fitness-related purchase before the pandemic.
“We believe this is a trend that helped drive better than expected earnings these last few quarters for Peloton. This also supports Peloton’s thesis that its serviceable addressable market (SAM) has expanded beyond its initial 14 million estimate to 20 million, as consumers who may not have considered purchasing at-home equipment previously are now a growing base of customers… With a very strong NPS, expanding product line and geographies, and continued brand marketing pushes, we believe that the TAM/SAM opportunities are likely to continue to expand over time,” Squali explained.
What’s more, Peloton was cited as the top brand that consumers would buy. “This speaks to the strength of the Peloton brand among younger, less affluent consumers, and runs contrary to the thesis held by some that that Peloton remains an exclusive brand and therefore targeting a niche segment (see page 3/4 for figures),” in Squali’s opinion.
As bikes are gaining share in the at-home exercise equipment market and PTON’s lower-priced products are attracting major interest, Squali remains on board this fitness train.
Accordingly, Squali reiterated a Buy rating. He also bumped up the price target from $115 to $144. This target puts