Twist Bioscience (TWST Quick Quote – ) reported a loss of $0.91 per share for the quarter, compared to a Zacks Consensus Estimate loss of $1.08. This compares with a loss of $0.72 per share a year ago. These figures have been adjusted for non-recurring items.
The quarter reported a surprise gain of 15.74%. A quarter ago, the biotech maker of synthetic DNA was expected to lose $0.80 per share, while it actually lost $0.84, a surprising -5%.
Only once in the past four quarters has the company beaten widespread earnings per share estimates.
Twist Bioscience, part of the Zacks Medical – Biomedical and Genetics industry, reported revenue of $42.02 million for the quarter ended December 2021, topping the Zacks Consensus Estimate by 10.48%. This compares to revenues of $28.16 million a year ago. The company has beaten the market's general revenue estimates four times in the last four quarters.
Based on recently released data and future earnings expectations, the sustainability of the stock's immediate price action will depend largely on management's comments on the earnings call.
Since the beginning of the year, Twist Bioscience shares have fallen approximately 21.2%, compared to a -6.1% decline in the S&P 500 Index.
What is the next step for Twist Bioscience?
While Twist Bioscience has lagged the market so far this year, the question on investors' minds is: What's next for the stock?
There is no simple answer to this key question, but a reliable indicator that can help investors address it is a company's earnings outlook. This includes not only the current general earnings expectations for the next quarter, but also recent changes in those expectations.
Empirical studies have shown a strong correlation between recent stock movements and trends in earnings estimate revisions. Investors can track such revisions themselves, or rely on a tried-and-true rating tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Prior to this, Twist Bioscience's estimate revisions trended: mixed. While the magnitude and direction of estimate revisions may change after the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. Therefore, it is expected that these stocks will remain in line with the market in the near future. You can see.
It will be interesting to see how the estimates for the next few quarters and the current fiscal year change in the coming days. The prevailing earnings per share estimate is currently -$1.15, with revenues of $46.18 million for the next quarter and -$4.79 for the current fiscal year at $189.05 million.
Investors should note that the outlook for the sector may also have a significant impact on the performance of the stock. Medical-Biomedical and Genetics currently ranks in the bottom 44% of over 250 Zacks sectors for Zacks industry rankings. Our research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2-to-1.
Another stock in the same sector, Alnylam Pharmaceuticals (ALNY Quick Quote – ), has not yet announced its results for the quarter ending December 2021. Results are expected to be released on February 10.
The RNA interference drug developer is expected to report a quarterly loss of $1.47 per share, a change of +29.7% year-over-year, in its upcoming report. General expectations for earnings per share for the quarter have been raised by 4.2% over the past 30 days to current levels.
Alnylam Pharmaceuticals' revenues are expected to be $237.92 million, an increase of 45.5% over the same period last year.