Understanding Recursion Pharmaceuticals' Earnings Expectations
Key Earnings Expectations for Recursion Pharmaceuticals
Recursion Pharmaceuticals (NASDAQ: RXRX) is preparing to share its quarterly earnings, creating a buzz among investors. As the date approaches, many are eager to discover how the company will perform this quarter.
Analyst Estimates
Analysts are currently forecasting that Recursion Pharmaceuticals will report an earnings per share (EPS) of $-0.35. This figure sets the stage for a significant discussion regarding the company’s future performance.
With heightened anticipation, stakeholders are looking forward to the upcoming announcement. There is a prevailing hope that Recursion Pharmaceuticals may exceed these expectations while providing encouraging forecasts for the following quarter.
Past Earnings Overview
Previous Performance
In its last earnings announcement, the company surpassed the EPS estimate by $0.02. However, despite exceeding expectations, the stock saw a notable decline of 12.62% in the immediate trading session that followed.
Performance Review Metrics
To provide more context, let’s examine Recursion Pharmaceuticals's past quarterly performance:
Stock Performance Trends
As of August 1, shares of Recursion Pharmaceuticals were trading at $5.68. Over the last year, the stock has experienced a decline of 12.74%. With these negative trends, it’s likely that long-term shareholders may be feeling bearish as they approach this earnings release.
Insights from Analysts
Understanding the market sentiments and expectations is crucial for investors. Recent insights regarding Recursion Pharmaceuticals suggest a positive outlook. The company currently holds a consensus Buy rating from analysts, with an average one-year price target of $6.5, indicating a potential upside of approximately 14.44%.
Comparative Analysis with Peers
Analyst Ratings and Expectations
In assessing the competitive landscape, it’s important to analyze how Recursion Pharmaceuticals stacks up against its industry peers. Here’s a summary of some significant competitors:
- Mirum Pharmaceuticals: Consensus rating of Buy, with a one-year price target suggesting a potential upside of 1226.23%.
- Kiniksa Pharmaceuticals: Also rated as Buy, with estimates showing a potential growth of 745.07%.
- Ultragenyx Pharmaceutical: Analysts favor an Outperform trajectory, forecasting a 976.41% potential increase.
Peer Metrics Overview
A closer look at these competitors reveals the following:
Company Performance Summary
Recursion Pharmaceuticals appears to be facing challenges when compared to its peers:
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Recursion Pharmaceuticals | Buy | 9.84% | $-7.01M | -20.57% |
| Mirum Pharmaceuticals | Buy | 61.20% | $88.57M | -6.40% |
| Kiniksa Pharmaceuticals | Buy | 44.34% | $85.78M | 3.74% |
| Ultragenyx Pharmaceutical | Outperform | 27.99% | $110.63M | -75.63% |
A key takeaway from this analysis is that Recursion Pharmaceuticals is currently at the bottom of the list in terms of revenue growth when compared to its peers. Additionally, the company reports the lowest margin in gross profit and return on equity.
Introduction to Recursion Pharmaceuticals
Recursion Pharmaceuticals Inc specializes in biotechnology and is in the clinical-stage of development. The company is committed to transforming drug discovery through innovative approaches that integrate biology, data science, and engineering, all aimed at enhancing patient lives.
Financial Health Analysis
Market Capitalization Insights
Recursion Pharmaceuticals's market capitalization is significantly lower than industry averages, which presents unique challenges for the firm. Nevertheless, the company has achieved a noteworthy revenue growth rate of approximately 9.84% as of March 31, 2025.
Profitability Metrics
The net margin of Recursion Pharmaceuticals is at defined levels that surpass industry standards despite revealing a negative figure of -1366.49%. This showcases the need for effective cost management in maintaining financial health.
Evaluating Returns
The Return on Equity (ROE) for Recursion Pharmaceuticals is concerning at -20.57%, indicating difficulties in delivering satisfactory returns to shareholders. Similarly, the company's Return on Assets (ROA) stands at -14.71%, pointing to issues with asset utilization.
Debt Strategy
The company's debt-to-equity ratio is about 0.1, indicating a balanced approach to handling debt compared to industry standards, which is a positive aspect.
Frequently Asked Questions
What is the expected EPS for Recursion Pharmaceuticals?
The expected EPS is forecasted to be $-0.35.
How did the stock perform after the last earnings release?
The stock dropped by 12.62% following the previous earnings announcement despite beating EPS estimates.
What is the current consensus rating for Recursion Pharmaceuticals?
Analysts currently maintain a Buy rating for the company.
How does Recursion Pharmaceuticals compare to its peers?
Recursion ranks lower in revenue growth and profitability metrics compared to peers like Mirum and Kiniksa Pharmaceuticals.
What is Recursion Pharmaceuticals focused on?
The company focuses on transforming drug discovery through the integration of innovative technologies across multiple disciplines.
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