IDEAYA Biosciences Inc. (NASDAQ: IDYA) announced its Q4 2021 earnings and revenue report on Tuesday, March 15, 2022, in which it announced a loss and missed revenue estimates.
What to look for: The company has various clinical trials that are currently ongoing, and it is monitoring the COVID-19 pandemic and its possible impact on the timing of the trials and clinical data releases. Already clinical sites initiation is ongoing with patient enrolment and monitoring in progress. At the end of the quarter, the company had cash and equivalents of $368.1 million, which it thinks is adequate to fund its activities through 2025.
Earnings: Stockearnings Estimated EPS for the quarter was a loss of $0.31 per share, but the company reported a loss of $0.47 per share, representing an earnings surprise of -51.61%. A year ago, the company had a loss per share of $0.18. In the third quarter, the company was expected to report a loss per share of $0,29 but produced an actual loss per share of $0.31, representing a surprise of -6.9%. Historical EPS performance shows that the company has, in the past 12 quarters, topped estimates twice (20%), matched twice (20%), and missed six times (60%).
Revenue: The company posted revenue of $2.96 million for the quarter ending December 31, 2021, and missed estimates by 70.76%. A year ago, the company had revenue of $10.57 million. The company has failed to beat sales estimates in the past four quarters.
Stock movement: IDYA shares have lost 47% since the company released its last earnings release. Interestingly, following the earnings release, the company's shares have been DOWN 5 times in the past ten quarters. So, the historical price reaction suggests a 50% probability of the share price going UP following the earnings release. According to the Stockearning algorithm, the predicted volatility on the first day is +/-3%, while the predicted volatility on the seventh day is +/-3%.
What analysts are saying: Stifel analyst Benjamin Burnett slashed his price target on IDYA from $20 to $17 but maintained a Buy rating in the shares after IDE397 data that he termed “mixed” with some negatives and positives but equally “early and not thesis changing.” However, Burnett has cut his likelihood of success for IDE397 to 25% because one of just two individuals with indications of tumor SDMA reductions attained just a 12% drop in the nucleus of cells. As a result, he has lowered his price objective.
Northland analyst Timothy Chiang named IDYA as his top pick for this year, citing the company's differentiated pipeline, strong balance sheet, and solid management team. In addition, the analyst anticipates additional results releases for darovasertib and IDE397, which is likely to drive upside in 1H 2022. As a result, Chiang maintains a Buy rating on the stock with a price target of $32 on the shares.
Roth Capital analyst Zegbeh Jallah raised IDYA’s price target from $38 to $42 and maintained a Buy rating on the shares after the firm released interim updates regarding its Phase 1/2 darovasertiv plus crizotinib study in metastatic Uveal melanoma patients. According to the analyst, the observed ORR of 31% in strongly pretreated subjects, while retaining excellent safety, is "apparently unparalleled," setting the stage for favorable mPFS results and FDA discussions in 1H 2022.
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