It has been about a month since the last earnings report for Rocket Pharmaceuticals (RCKT). Shares have lost about 10.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Rocket Pharmaceuticals due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Rocket Pharmaceuticals’ Q2 Earnings Meet Estimates, Sales Nil

Rocket Pharmaceuticals reported a loss of 74 cents per share in the second quarter of 2024, which was in line with the Zacks Consensus Estimate. In the year-ago quarter, the company reported a loss of 82 cents per share.

In the absence of a marketed product in its portfolio, the company did not record any revenues in the second quarter.

Quarter in Detail

In the reported quarter, general and administrative expenses rose 49.1% year over year to $49.5 million. The upside was driven by an increase in the company’s commercial preparation expenses comprising non-cash stock compensation, legal and other expenses.

Research and development expenses were $91.6 million, down 6.3% from the year-ago quarter’s figure. The downside was due to a decline in manufacturing and development costs.

As of June 30, 2024, Rocket Pharmaceuticals had cash, cash equivalents and investments of $278.8 million compared with $330.3 million on March 31, 2024. Management expects this cash balance to fund its ongoing operations and meet capital expenditure requirements into 2026.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

VGM Scores

Currently, Rocket Pharmaceuticals has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Rocket Pharmaceuticals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Rocket Pharmaceuticals belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Apellis Pharmaceuticals, Inc. (APLS), has gained 10.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.