## Agios Pharmaceuticals Earnings Preview: What to Expect on October 31st
Investors are gearing up for Agios Pharmaceuticals’ (AGIO) quarterly earnings report, scheduled for release on Thursday, October 31st, 2024. This report will be a key indicator of the company’s financial health and future prospects, and market analysts are closely watching for insights into both current performance and future guidance.
Analyst Expectations and Past Performance
Analysts anticipate Agios Pharmaceuticals to report an earnings per share (EPS) of $-1.01 for the quarter. While a loss is expected, investors are hoping for a positive surprise and optimistic guidance for the next quarter. It’s crucial to remember that market reactions are often driven by guidance, not just earnings performance. Looking back, Agios Pharmaceuticals missed EPS estimates by $0.10 last quarter, resulting in a 1.21% share price drop the following day. This illustrates the importance of guidance in shaping investor sentiment.
Here’s a detailed look at Agios Pharmaceuticals’ recent earnings performance and the corresponding price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|—|—|—|—|
| Q2 2024 | -1.59 | -1.69 | -1.0% |
| Q1 2024 | -1.65 | -1.45 | -0.0% |
| Q4 2023 | -1.65 | -1.72 | -1.0% |
| Q3 2023 | -1.70 | -1.64 | 7.0% |
Analyst Sentiment and Peer Comparisons
To get a sense of the broader market sentiment surrounding Agios Pharmaceuticals, let’s delve into analyst ratings and expectations. Analysts have given Agios Pharmaceuticals a total of 5 ratings, with the consensus rating being ‘Outperform’. The average one-year price target is $53.6, suggesting a potential upside of 14.46%.
To further analyze the company’s position within the industry, we’ll compare Agios Pharmaceuticals to three prominent peers: Veracyte, Catalyst Pharmaceuticals, and Geron.
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Veracyte:
Analysts project a ‘Buy’ trajectory for Veracyte, with an average one-year price target of $36.17, indicating a potential downside of 22.76%.*
Catalyst Pharmaceuticals:
The consensus outlook from analysts is a ‘Buy’ trajectory for Catalyst Pharmaceuticals, with an average one-year price target of $30.33, indicating a potential downside of 35.23%.*
Geron:
Analysts maintain an ‘Outperform’ status for Geron, with an average one-year price target of $6.33, indicating a potential downside of 86.48%.Key Financial Metrics and Peer Analysis
The following table summarizes key financial metrics for Agios Pharmaceuticals and its peers, offering insights into their respective market positions and performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Agios Pharmaceuticals | Outperform | 28.35% | $7.12M | -13.69% |
| Veracyte | Buy | 26.69% | $77.91M | 0.51% |
| Catalyst Pharmaceuticals | Buy | 23.23% | $107.31M | 6.97% |
| Geron | Outperform | 2941.38% | $865K | -20.68% |
Key Takeaway:
Agios Pharmaceuticals ranks at the bottom for Revenue Growth and Gross Profit among its peers. It also ranks at the bottom for Return on Equity. This suggests potential challenges in generating strong revenue and managing profitability effectively.About Agios Pharmaceuticals
Agios Pharmaceuticals Inc. is a biopharmaceutical company specializing in developing treatments for cancer and rare genetic metabolic disorders. The company focuses on developing potentially transformative small-molecule medicines. Agios’ clinical development plan employs a precision approach with initial study designs that target genetically or biomarker-defined patient populations. This strategy aims to demonstrate proof of concept early in clinical development, potentially leading to accelerated approval.
Financial Insights
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Market Capitalization:
Agios Pharmaceuticals’ market capitalization is below industry averages, posing unique challenges in terms of size and resources.*
Revenue Growth:
Agios Pharmaceuticals demonstrated positive revenue growth of 28.35% over the past three months, ending June 30, 2024. This indicates a substantial increase in top-line earnings. However, this growth rate lags behind the average among peers in the Health Care sector.*
Net Margin:
Agios Pharmaceuticals’ net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -1115.71%, the company may face difficulties in managing costs effectively.*
Return on Equity (ROE):
Agios Pharmaceuticals’ ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -13.69%, the company may need to address challenges in generating satisfactory returns for shareholders.*
Return on Assets (ROA):
The company’s ROA is below industry benchmarks, indicating potential difficulties in efficiently utilizing assets. With an ROA of -11.85%, the company may need to address challenges in generating satisfactory returns from its assets.*
