Equillium Inc Down 19.47% To $1.97 After Earnings Beat

Tuesday, March 26, 2024 - Equillium Inc (EQ) reported upside earnings and revenues today.

Analyst expectations for Equillium Inc earnings per share (EPS) were at a loss of $0.17 per share, with the company surpassing those estimates with a reported EPS loss of $0.07 per share, leading to a positive surprise of $0.1 per share (59%). Equillium Inc's earnings were down 188% year-over-year as the firm reported an EPS of $0.08 in its year-ago quarter. The negative annual growth shows the Healthcare company isn't performing well amid current economic conditions.

Consensus estimates for Equillium Inc revenue averaged out to $8.9 million, with the business managing to beat those expectations with reported fourth-quarter revenue of $9.2 million. The $361 thousand (4%) positive revenue surprise led to negative 42% growth year-over-year as the firm reported revenue of $15.8 million in its year-ago quarter. The lower earnings growth compared to revenue points to Equillium Inc not being able to improve its profit margin.

The stock is down 19.47% to $1.97 after the report.

Equillium Inc's profit margins took a hit as earnings fell at a faster pace than revenues.

Wall Street Analysts had an average rating of Strong Buy on the stock prior to the report.

InvestorsObserver gives the stock a Bearish Sentiment score at the moment based on recent trading.

Equillium Inc has been a strong performer over the past few months, garnering a high Long-Term Technical Rank by InvestorsObserver of 99, putting Equillium Inc in the top 25% of stocks. The firm was recently trading at a 52-week high of $3.25 on February 26, 2024 and set a 52-week low on November 13, 2023 at $0.45.

Equillium Inc is a biotechnology developing therapies to treat autoimmune and inflammatory disorders. Its pipeline includes itolizumab, a first-in-class antibody targeting the CD6-ALCAM pathway which plays a key role in the modulation of effector T cells - currently in a Ph 3 study for patients with acute graft-versus-host disease and a Ph 1b study for patients with lupus nephritis. EQ101, a first-in-class cytokine inhibitor that selectively targets IL-2, IL-9, and IL-15 is Ph 2 ready and expected to begin enrolling patients in an alopecia areata study in 2H 2022. EQ102, a cytokine inhibitor that selectively targets IL-15 and IL-21, is ready for clinical development and expected to begin enrolling patients in a Ph 1study including patients with celiac disease.