NeuBase Therapeutics Inc. (NASDAQ: NBSE) has confirmed that it will release its fiscal Q4 earnings results on Wednesday, December 22, 2021, after market close.
What to look for
NeuBase Therapeutics is an early-stage firm that is yet to start generating revenue. So when the company releases its Q4 2021 earnings, investors will be looking at its cash burn to understand the expenditure trend over time and the company’s growth. Interestingly, the company's cash burn has surged 82% over the past year. Although the cash burn increase is meant to spur growth, if NeuBase continues that trend, its cash runway is likely to diminish quickly.
Earnings: Stockearning’s Estimated EPS for the fourth quarter is expected to be better than the one net loss of $0.29 per share reported in fiscal Q3 2021. The net loss widened YoY to $8.7 million from $3.8 million or $0.18 per share a year ago. For the nine months ending June 30, 2021, the company had a net loss of $18.3 million or $0.72 per share relative to a net loss of $12.7 million or $0.69 per share a year ago. Historical EPS Performance indicates that NeuBase Therapeutics has in the past 12 quarters topped estimates thrice (27%), matched once (9%), and missed thrice (27%).
Revenue: The company is still an early-stage business that has yet to generate revenue. At the end of the third quarter, the company has cash and cash equivalents of $58.8 million, which is adequate to fund current operating and capital expenditures through Q1 2023. In addition, during the third quarter, the company completed an oversubscribed public offering of around $42.6 million in net proceeds, offering a cash runway into fiscal 2023.
Stock movement: NBSE shares have lost 19.1% since the last earnings release. On the other hand, Neubase shares have been UP 7 times out of the past ten quarters following the earnings release. So, the historical price reaction suggests a 70% probability of the share price going UP once NBSE reports its fiscal Q4 earnings. According to the Stockearning algorithm, the predicted first-day move is 4%, while the predicted move on the seventh day is 7%.
What analysts are saying
Wainwright analyst Raghuram Selvaraju lowered his price target on NeuBase Therapeutics from $18 to $15 and maintained a Buy rating on the stock to reflect the impact that dilution had following its recent financing in which the company raised $42 million in proceeds.
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