Recursion (RXRX) to Report Q1 Earnings: What’s in the Cards? – May 6, 2024


Recursion (RXRX Free Report) is slated to report first-quarter 2024 results on May 9, after market close.

The Zacks Consensus Estimate is pegged at a loss of 43 cents per share. The Zacks Consensus Estimate for first-quarter revenues is pinned at $13.4 million, suggesting a 10% increase from the year-ago quarter’s reported figure.

Let us see how things have shaped up for the quarterly release of this TechBio company that decodes biology and chemistry to industrialize drug discovery.

Factors to Consider

In the absence of a marketed product in the company’s commercial portfolio, Recursion only recognizes collaboration revenues from its partners.

The company has ongoing collaboration agreements with pharma giants like Roche and Bayer to develop candidates for several oncology indications, with differentiated mechanisms of action. RXRX is also currently collaborating with NVIDIA Corporation, the worldwide leader in visual computing technologies, to accelerate the development program of its novel AI foundation models for biology and chemistry.

Revenues from such existing collaborations are likely to have recorded year-over-year growth for Recursion.

The company is expected to provide updates regarding the clinical-stage pipeline programs in its first-quarter earnings results. RXRX expects several data readouts throughout 2024 and 2025.

Recursion’s oncology candidate, REC-994, is being evaluated in the mid-stage SYCAMORE study to treat cerebral cavernous malformation. It completed patient enrollment for the study last year and expects to share top-line data from the same in the third quarter of 2024. 

RXRX’s other pipeline candidates include REC-2282 and REC-4881 for treating neurofibromatosis type II (NF2) and familial adenomatous polyposis (FAP), respectively. Two doses of REC-2282 are being evaluated in Part 1 of the mid to late-stage POPLAR study for the NF2 indication. Recursion expects to share phase II safety and preliminary efficacy data in fourth-quarter 2024.

On the other hand, the early to mid-stage TUPELO study is evaluating REC-4881 for patients with FAP. The company expects to report phase II safety and preliminary efficacy data in the first half of 2025.

Recursion is also evaluating REC-4881 in a phase II LILAC study for the treatment of patients with unresectable, locally advanced or metastatic cancer with AXIN1 or APC mutations.RXRX is likely to provide an update regarding the same on the first-quarter earnings call.

The company has several other pre-clinical and clinical-stage candidates that are being developed to target genetically-driven rare diseases and precision oncology. 

Research and development expenses are expected to have improved in the to-be-reported quarter due to increased investments in expanding and upgrading the company’s proprietary candidate development platform.

General and administrative expenses are also likely to have increased because of higher compensation to employees and improvements in legal, software and depreciation expenses.

Earnings Surprise History

The company beat estimates in one of the trailing four quarters, matched twice and missed once, delivering an average negative surprise of 0.03%. In the last reported quarter, the company came up with an earnings surprise of 13.04%.

Shares of Recursion have lost 8.4% in the year-to-date period compared with the industry’s decline of 6.8%.

 

 

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Recursion this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: Recursion has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate.

Zacks Rank: RXRX currently carries a Zacks Rank #3.

Stocks to Consider

Here are some stocks worth considering from the same industry, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Adverum Biotechnologies (ADVM Free Report) has an Earnings ESP of +3.66% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Adverum Biotechnologies have gained 37.9% in the year-to-date period. ADVM beat estimates in three of the last four quarters and missed the same on one occasion, delivering a negative earnings surprise of 3.58%.

Argenx (ARGX Free Report) has an Earnings ESP of +10.00% and a Zacks Rank #3 at present.

Shares of Argenx have gained 2.9% year to date. ARGX beat earnings estimates in two of the last four quarters and missed the mark on one occasion while meeting on another, delivering an average surprise of 14.18%. The company is set to report first-quarter 2024 results on May 9.

Catalyst Pharmaceuticals (CPRX Free Report) has an Earnings ESP of +1.19% and a Zacks Rank #3 at present.

Shares of Catalyst have plunged 12% year to date. CPRX beat on earnings in two of the trailing four quarters, matched once and missed the remaining occasion, delivering an average surprise of 7.27%. CPRX is scheduled to release first-quarter 2024 results on May 8.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


Only $1 to See All Zacks’ Buys and Sells


We’re not kidding.


Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.


Thousands have taken advantage of this opportunity. Thousands did not – they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.

See Stocks Now >>



Source link

  • Related Posts

    Just in time for summer travel, Chase offers up to 90K Miles for new United Cardmembers

    Fortune Recommends™ has partnered with CardRatings for our coverage of credit card products. Fortune Recommends™ and CardRatings may receive a commission from card issuers.  If you’ve been cooped up all winter and are thinking…

    Which stores accept EBT cards to make online payments?

    Here are the American citizens that can still receive SNAP payments, the former Food Stamps Currently, all 50 States accept EBT cards online. In this way, SNAP (Food Stamps) recipients…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Just in time for summer travel, Chase offers up to 90K Miles for new United Cardmembers

    Just in time for summer travel, Chase offers up to 90K Miles for new United Cardmembers

    Which stores accept EBT cards to make online payments?

    Which stores accept EBT cards to make online payments?

    YAY Moments launches payment cards

    YAY Moments launches payment cards

    Sotheby’s Bets on High-End Trading Cards with New Fanatics Partnership

    Sotheby’s Bets on High-End Trading Cards with New Fanatics Partnership

    Dads lost to ill health remembered in commemorative Father’s Day cards

    Dads lost to ill health remembered in commemorative Father’s Day cards

    Old MTG card sees 1000% price spike due to Eldrazi commander

    Old MTG card sees 1000% price spike due to Eldrazi commander