LENZ Therapeutics (NASDAQ:LENZ) Issues Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• LENZ Therapeutics beat quarterly EPS estimates, reporting a $1.02 loss per share versus the expected $1.05 loss, while revenue of $5.49 million exceeded the $2.38 million consensus.
• Commercial momentum improved, with July prescriptions rising more than 45% month over month after the company expanded telehealth prescribing and its national TV campaign. More than 60% of ePharmacy patients purchased multiple monthly packs, indicating encouraging early persistence.
• The company still posted a $31.9 million net loss, and its stock fell 2.8% to $5.21. Analysts maintain a consensus “Hold” rating, with an average price target of $29.80.

LENZ Therapeutics (NASDAQ:LENZ - Get Free Report) posted its quarterly earnings results on Tuesday. The company reported ($1.02) EPS for the quarter, topping analysts' consensus estimates of ($1.05) by $0.03, FiscalAI reports. LENZ Therapeutics had a negative return on equity of 46.82% and a negative net margin of 519.30%.The company had revenue of $5.49 million for the quarter, compared to analysts' expectations of $2.38 million.

Here are the key takeaways from LENZ Therapeutics' conference call:

• July prescriptions increased more than 45% month over month after LENZ launched telehealth prescribing and expanded its national TV campaign; management said growth was observed across all channels.
• Early persistence data were encouraging, with more than 60% of ePharmacy patients purchasing multiple monthly packs. Among the more mature cohorts, repeat purchasing is tracking toward an average of five packs annually among patients who refill.
• Q2 product revenue was $1.7 million on approximately 27,000 packs sold, up 9% sequentially, while total revenue reached $5.5 million partly due to $3.8 million in ex-U.S. licensing revenue.
• The company reported a $31.9 million net loss, or $1.02 per share, and adjusted SG&A was $34.9 million despite falling 14% quarter over quarter. Management plans to evaluate Q3 data before determining the appropriate level and mix of commercial spending.
• LENZ expanded its international commercial network with a fifth partnership covering Australia and New Zealand, while nine regulatory submissions remained under review and additional submissions were expected by year-end.

LENZ Therapeutics Stock Down 2.8%

LENZ Therapeutics stock traded down $0.15 during midday trading on Tuesday, reaching $5.21. 505,923 shares of the stock traded hands, compared to its average volume of 946,450. The stock has a market cap of $163.33 million, a P/E ratio of -1.45 and a beta of 0.65. The stock's fifty day moving average is $5.82 and its 200-day moving average is $9.36. LENZ Therapeutics has a 12 month low of $4.68 and a 12 month high of $50.40.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on LENZ shares. Piper Sandler lowered shares of LENZ Therapeutics from an "overweight" rating to a "neutral" rating and cut their price objective for the company from $39.00 to $12.00 in a report on Tuesday, May 12th. HC Wainwright restated a "buy" rating on shares of LENZ Therapeutics in a research report on Tuesday, July 7th. Citigroup cut their target price on shares of LENZ Therapeutics from $26.00 to $20.00 and set a "buy" rating for the company in a research note on Wednesday, May 13th. Zacks Research cut shares of LENZ Therapeutics from a "hold" rating to a "strong sell" rating in a research note on Wednesday, July 15th. Finally, Weiss Ratings upgraded shares of LENZ Therapeutics from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, June 17th. Five analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, LENZ Therapeutics presently has a consensus rating of "Hold" and an average target price of $29.80.

Institutional Trading of LENZ Therapeutics

Large investors have recently added to or reduced their stakes in the company. Creative Planning bought a new position in shares of LENZ Therapeutics during the 2nd quarter valued at approximately $412,000. JPMorgan Chase & Co. grew its holdings in shares of LENZ Therapeutics by 28.7% in the second quarter. JPMorgan Chase & Co. now owns 10,361 shares of the company's stock valued at $304,000 after purchasing an additional 2,310 shares in the last quarter. Legal & General Group Plc increased its position in LENZ Therapeutics by 25.7% in the second quarter. Legal & General Group Plc now owns 10,989 shares of the company's stock worth $322,000 after purchasing an additional 2,247 shares during the last quarter. Rhumbline Advisers increased its position in LENZ Therapeutics by 35.6% in the second quarter. Rhumbline Advisers now owns 24,363 shares of the company's stock worth $714,000 after purchasing an additional 6,396 shares during the last quarter. Finally, Russell Investments Group Ltd. raised its stake in LENZ Therapeutics by 1,105,675.0% during the second quarter. Russell Investments Group Ltd. now owns 44,231 shares of the company's stock valued at $1,296,000 after purchasing an additional 44,227 shares in the last quarter. Institutional investors own 54.32% of the company's stock.

LENZ Therapeutics Company Profile

LENZ Therapeutics, Inc, a biopharmaceutical company, focuses on developing and commercializing therapies to improve vision in the United States. Its product candidates include LNZ100 and LNZ101 which are in Phase III clinical trials for the treatment of presbyopia. The company is headquartered in Del Mar, California.

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