Vir Biotechnology, Inc. (VIR) came out with quarterly earnings of $ 3.85 per share, beating Zacks’ consensus estimate of $ 3.21 per share. This compares to the loss of $ 1.32 per share a year ago. These values are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 19.94%. A quarter ago, this company was expected to post earnings of $ 2.60 per share when it actually produced earnings of $ 3.92, offering a surprise of 50.77%.
In the past four quarters, the company has four times exceeded the consensus estimates on EPS.
Vir Biotechnology, Inc., which is part of the Zacks Medical – Biomedical and Genetics business, reported revenue of $ 1.23 billion for the quarter ended March 2022, exceeding the Zacks Consensus Estimate by 80.87%. This compares with a turnover of $ 1.98 million a year ago. The company has surpassed consensus revenue estimates four times in the past four quarters.
The sustainability of the stock price’s immediate move based on recently released numbers and future earnings expectations will largely depend on management’s comment on the earnings call.
Shares of Vir Biotechnology, Inc. have lost about 46.8% since the beginning of the year against the S&P 500’s decline of -9.8%.
What are the prospects for Vir Biotechnology, Inc.
While Vir Biotechnology, Inc. has underperformed the market so far this year, the question that comes to investors’ minds is: what is the outlook for the stock?
There are no easy answers to this key question, but a reliable measure that can help investors address this problem is the company’s earnings outlook. Not only does this include the current consensus earnings expectations for the next few quarters, but also how these expectations have changed recently.
Empirical research shows a strong correlation between short-term equity movements and trends in earnings estimate revisions. Investors can track such revisions on their own or rely on a proven valuation tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Prior to this earnings release, the trend of estimates revisions for Vir Biotechnology, Inc. Mixed. While the magnitude and direction of estimate revisions may change following the company’s newly released earnings report, the current status translates to a Zacks Rank # 3 (Hold) for the stock. Therefore, the shares are expected to be in line with the market in the near future. You can see the full list of Zacks # 1 Rank (Strong Buy) stock today here.
It will be interesting to see how the estimates change for the next few quarters and for the current fiscal year in the coming days. The current consensus EPS estimate is $ 0.97 on $ 447.1 million in revenue for the next quarter and $ 4.64 on $ 1.82 billion in revenue for the current fiscal year.
Investors should be aware that the outlook for the sector can also have a significant impact on the stock’s performance. In terms of Zacks Industry Rank, Medical – Biomedical and Genetics is currently in the lowest 41% of the more than 250 Zacks industries. Our research shows that the richest 50% of Zacks-rated industries outnumber the poorest 50% by a factor of more than 2 to 1.
Another stock in the same industry, Berkeley Lights, Inc. (BLI), has not yet reported results for the quarter ended March 2022. The results are expected to be released on May 9th.
This company is expected to post a quarterly loss of $ 0.31 per share in its next report, representing a year-over-year change of -29.2%. The consensus estimate on EPS for the quarter has remained unchanged for the past 30 days.
Berkeley Lights, Inc. revenue is expected to be $ 20.53 million, up 10.2% from a year ago quarter.
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