Zymeworks Inc Down 4.51% To $7.41 After Earnings Miss

Zymeworks Inc (ZYME) missed earnings estimates for Q2 2023 this afternoon.

Zymeworks Inc's earnings came in at an EPS loss of $0.75 per share, 60% lower than estimates for an EPS loss of $0.47 per share. The firm's loss per share narrowed by 18% since reporting a loss of $0.92 per share a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus analyst estimates were at $12.4 million. The Healthcare company missed on those expectations for its second quarter with revenue of $7 million, a negative revenue surprise of $5.4 million (43%). The firm managed 29% growth year-over-year due to Zymeworks Inc reporting quarterly revenue of $5.4 million in its year-ago quarter. Zymeworks Inc achieved a lower earnings growth rate than revenue, signaling that the business has not been able to improve its profit margin.

The stock is down 4.51% to $7.41 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

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

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

Zymeworks Inc has performed a little below average during the past few months. Before the report, Zymeworks Inc received a Long-Term Technical Rank by InvestorsObserver of 28, putting it in the bottom half of stocks. The firm set a 52-week high on January 19, 2023 at $10.8 and set a 52-week low on September 7, 2022 at $4.11.

Zymeworks Inc is a clinical-stage biopharmaceutical company dedicated to the discovery, development and commercialization of next-generation multifunctional biotherapeutics. Its suite of therapeutic platforms and its fully integrated drug development engine enable precise engineering of differentiated product candidates. Its lead clinical candidate, zanidatamab, is a novel Azymetric HER2-targeted bispecific antibody currently being evaluated in multiple Phase 1, Phase 2, and pivotal clinical trials globally as a targeted treatment option for patients with solid tumors that express HER2. The company is also advancing a deep preclinical pipeline in oncology and other therapeutic areas.