## Ginkgo Bioworks Holdings (DNA) Earnings Preview: Can it Turn the Tide on a Troubling Year?
Ginkgo Bioworks Holdings (DNA), a leading platform for cell programming, is gearing up to release its quarterly earnings report on Tuesday, November 12th, 2024. Investors are eagerly awaiting this announcement, hoping for positive news after a year marked by declining share prices and financial challenges.
Analysts anticipate Ginkgo Bioworks Holdings to report an earnings per share (EPS) of -$2.82. While this forecast points to a continued loss, investors are looking for signs of a turnaround, hoping the company can exceed estimates and offer optimistic guidance for the next quarter. It’s important to remember that stock prices can be heavily influenced by future projections, not just past performance.
A Look Back at Ginkgo Bioworks Holdings’ Recent Performance
The company’s recent track record has been far from reassuring. In the last quarter, Ginkgo Bioworks Holdings missed EPS estimates by $1.20, leading to a 5.46% drop in share price the following day. Here’s a closer look at its recent earnings performance and the subsequent market reaction:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|—|—|—|—|
| Q2 2024 | -3.2 | -4.4 | -5.0% |
| Q1 2024 | -3.2 | -3.2 | -17.0% |
| Q4 2023 | -4.0 | -4.4 | -15.0% |
| Q3 2023 | -3.6 | -6.4 | -15.0% |
This consistent pattern of missing expectations and negative price movements has left long-term shareholders frustrated, adding pressure on the upcoming earnings report.
Industry Insights and Analyst Sentiment
To understand market sentiment and expectations within the biotechnology industry, it’s crucial to consider the insights of industry analysts. Ginkgo Bioworks Holdings has received a total of 2 ratings from analysts, with the consensus rating as Buy. The average one-year price target is $8.5, suggesting a potential 0.12% upside.
How Does Ginkgo Bioworks Holdings Stack Up Against Its Peers?
To get a better understanding of Ginkgo Bioworks Holdings’s position within the industry, let’s compare its analyst ratings and price targets to its peers:
*
Rayonier Adv Materials:
Analysts project an Outperform trajectory, with an average 1-year price target of $11.0, indicating a potential 29.56% upside.*
Flotek Industries:
Analysts currently favor an Buy trajectory, with an average 1-year price target of $8.0, suggesting a potential 5.77% downside.*
Danimer Scientific:
Analysts currently favor a Neutral trajectory, with an average 1-year price target of $1.0, suggesting a potential 88.22% downside.A Deeper Dive into Key Financial Metrics
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Ginkgo Bioworks Holdings | Buy | -30.24% | $42.48M | -23.88% |
| Rayonier Adv Materials | Outperform | 8.80% | $43.57M | -4.38% |
| Flotek Industries | Buy | 7.78% | $9.17M | 2.35% |
| Danimer Scientific | Neutral | -40.71% | $-6.90M | -9.25% |
This peer analysis reveals that Ginkgo Bioworks Holdings ranks at the bottom for Revenue Growth and Gross Profit, with negative percentages indicating a decline. It also has the lowest Return on Equity among its peers. Overall, Ginkgo Bioworks Holdings’s performance is weaker compared to its peers in terms of financial metrics.
Unveiling the Story Behind Ginkgo Bioworks Holdings
Ginkgo Bioworks Holdings Inc is a platform for cell programming, offering a range of end-to-end services to organizations across diverse markets, including food and agriculture, pharmaceuticals, and industrial and specialty chemicals. The company has reorganized its operations into two segments: Cell Engineering and Biosecurity. The majority of revenue comes from the Biosecurity segment, which provides data analytics and services.
Analyzing Ginkgo Bioworks Holdings’s Financial Performance
*
Market Capitalization:
Ginkgo Bioworks Holdings’s market capitalization is below industry averages, reflecting its smaller scale. This could be attributed to factors like growth expectations or operational capacity.*
Negative Revenue Trend:
Over the past 3 months, Ginkgo Bioworks Holdings has experienced a decline of approximately -30.24% in revenue growth, indicating a decrease in top-line earnings. This growth rate is lower than the average among its peers in the Materials sector.*
Net Margin:
Ginkgo Bioworks Holdings’s net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -386.73%, the company may face hurdles in effective cost management.*
Return on Equity (ROE):
Ginkgo Bioworks Holdings’s ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -23.88%, the company may face hurdles in generating optimal returns for shareholders.*
Return on Assets (ROA):
Ginkgo Bioworks Holdings’s ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -13.56%, the company may face hurdles in achieving optimal financial performance.*
Debt Management:
Ginkgo Bioworks Holdings’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.54.Key Takeaways
Ginkgo Bioworks Holdings faces significant challenges as it prepares for its earnings report. The company has struggled with declining revenue, profitability issues, and a weak market position compared to its peers. Investors will be closely watching for signs of a turnaround in the upcoming earnings release.
To track all earnings releases for Ginkgo Bioworks Holdings, visit their earnings calendar on our site.
