Dermata Therapeutics Inc. (NASDAQ: DRMA) has confirmed the release date for its Q4 2021 earnings, which will be on Monday, December 27, 2021, after market close.
What to look for
After the company completed its IPO in August, it strengthened the Board of Directors and executive team as it gears to the next development phase. Investors should be keen on the results from the company's DMT310 and DMT410 clinical trials expected in the coming quarter.
Earnings: Stockearning’s Estimated EPSE for the third quarter is expected to better the loss per share of $0.07 the company reported in fiscal Q2 2021. Historical EPS Performance for the past 12 quarters shows that the company has not to beat or missed estimates.
Revenue: The company had cash and equivalents of $427,202 at the end of the second quarter. In August, the company closed an oversubscribed IPO in which it issued 2.571 common shares and warrants to purchase equivalent common shares and an option for the underwriter to acquire 385,714 more warrants. As a result, the company generated gross proceeds of $18 million, which after deductions resulted in net proceeds of $15.7 million that will fund operations through Q4 2022.
Stock movement: DRMA shares have lost 52.9% since the last earnings release. Interestingly, DRMA shares have been DOWN one time out of the past one quarter. So, the historical price reaction suggests a 100% probability of the share price going DOWN once DRMA reports its fiscal Q4 earnings. According to the Stockearning algorithm, the predicted first-day move is 1%, while the predicted move on the seventh day is 16%.
What analysts are saying
Maxim analyst Anthony Vendetti commenced coverage on the stock with a Buy rating and a price target of $9. The analyst believes that based on results from the company’s clinical trials, DMT310 triggers rapid results relative to the currently available acne topicals. He told investors that DMT310 attained few total applications and has a good tolerability profile.
Vendetti said that if DMT310 is approved, its once per week application schedule will differentiate it from available topicals that usually need one or two applications per day. Also, Brooklin analyst Kumaraguru Raja commenced coverage on DRMA with a Buy rating and price target of $14. Raja noted that the company is creating DMT310, a once per week topical product for the management of acne, rosacea, and psoriasis, and DMT410, a topical treatment product for skin diseases treatment and other conditions treated with multiple injections of botulinum toxin. In addition, the analyst pointed out that the Phase 1b DMT410 and Phase 2b DMT310 trial results were encouraging.
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