bluebird bio Sinks 48% on Muted Q3 Results


bluebird bio, Inc. (BLUE), the gene therapy developer for severe genetic disorders and cancer, has reported weaker-than-expected results for the third quarter ended September 30, 2021.

Following the earnings, shares of the company nosedived 47.8% to close at $13.14 on Friday.

Revenue & Earnings

Quarterly revenues of the company jumped 17.7% year-over-year to $22.7 million on the back of a significant year-over-year rise witnessed in Collaborative arrangement revenue to $14.8 million. The Street had expected the company to post revenues of $35.4 million for the third quarter. Unfortunately, a 52% year-over-year decline in Service revenue to $6.3 million hurt the overall revenues.

Meanwhile, the company reported a quarterly loss per share of $3.16, wider than the loss of $2.94 reported in the same quarter last year and the consensus estimate of a loss of $2.60 per share.

Other Operating Metrics

The company ended the quarter with cash, cash equivalents and marketable securities balance of $970.7 million.

Management Commentary

The CEO of bluebird bio, Andrew Obenshain, said, “Notably this quarter, we secured additional capital through the close of a private financing and completion of the sale of our manufacturing facility in North Carolina and continued to make meaningful progress with our product pipeline, including filing the US biologics licensing application for beti-cel for beta-thalassemia.”

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Recommendation

Overall, the Street has a Hold consensus rating based on 2 Buys and 13 Holds. The average bluebird bio price target of $21.33 implies upside potential of 62.3%. Shares have declined about 63.2% over the past year.

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