Can FENC sustain its Q1 2024 EPS momentum?

**Fennec Pharmaceuticals (FENC) may face challenges in sustaining its Q1 2024 EPS momentum** based on several factors: 1. **Recent Performance**: FENC's Net Income and Diluted EPS have shown significant fluctuations over the past four quarters, with a notable loss in Q4 2024. The company reported a net loss of $1.99 million in Q4 2024, which is a cause for concern regarding the sustainability of its EPS momentum. |code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code| |---|---|---|---|---|---|---|---| |FENC|FENC.O|Fennec Pharmaceuticals|2024 Q1|2.5377E7|1.2837E7|0.41|186| |FENC|FENC.O|Fennec Pharmaceuticals|2024 Q2|7262000|-5553000|-0.2|186| |FENC|FENC.O|Fennec Pharmaceuticals|2024 Q3|6974000|-5735000|-0.21|186| |FENC|FENC.O|Fennec Pharmaceuticals|2024 Q4|7925000|-1985000||186| 2. **Growth Rates**: The growth rates for Net Income, Revenue, and Diluted EPS have been inconsistent, with a negative growth rate for Net Income in Q4 2024 and a decline in Diluted EPS in Q3 2024. These fluctuations indicate a challenging financial trajectory that may make it difficult to maintain EPS momentum. |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---|---| |FENC|FENC.O|Fennec Pharmaceuticals|2023 Q4|60.88668513927373|534.2019543973942||186| |FENC|FENC.O|Fennec Pharmaceuticals|2024 Q1|312.1116986120291|1413.237924865832|278.2608695652174|186| |FENC|FENC.O|Fennec Pharmaceuticals|2024 Q2|-2.0022042615723734|118.40601503759399|4.761904761904753|186| |FENC|FENC.O|Fennec Pharmaceuticals|2024 Q3|-207.17728976968397|7.045280122793553|-199.99999999999994|186| 3. **Margin Analysis**: FENC's Net Margin is negative at -0.92% as of Q4 2024, which is a red flag for profitability and suggests that the company is operating at a loss. Negative margins can make it difficult for a company to sustain EPS momentum, as the company is not generating enough profit to support its earnings per share. |code|Ticker|Name|Date|Gross Profit Margin|Operating Profit Margin|Net Profit Margin|market_code| |---|---|---|---|---|---|---|---| |FENC|FENC.O|Fennec Pharmaceuticals|2024 Q1|97.8327|50.857075304409506|50.5852|186| |FENC|FENC.O|Fennec Pharmaceuticals|2024 Q2|96.4521|22.650816507858696|22.3169|186| |FENC|FENC.O|Fennec Pharmaceuticals|2024 Q3|93.6511|4.246080832050084|3.9103|186| |FENC|FENC.O|Fennec Pharmaceuticals|2024 Q4|93.3022|0.38074803315242545|-0.9172|186| 4. **Industry and Market Conditions**: As a biotechnology company, FENC is subject to the volatility of the biotech sector, which can be influenced by regulatory news, clinical trial results, and market competition. These factors can impact the company's financial performance and its ability to sustain EPS momentum. 5. **Cash Flow and Financial Position**: While FENC has a strong cash position with $26.6 million as of December 31, 2024, the company's cash burn was approximately $0.6 million in Q4 2024. The company's cash flow dynamics and its ability to manage operating expenses will be crucial in determining whether it can sustain its EPS momentum. 6. **Strategic Developments**: FENC has made strategic hires and completed early repayment of debt, which are positive signs for the company's financial management. However, the effectiveness of these strategies in supporting EPS momentum will depend on the company's operational execution and market conditions. In conclusion, while FENC has a strong cash position and has achieved positive revenue growth, the negative net margins, recent losses, and inconsistent growth rates in Net Income and Diluted EPS suggest that sustaining Q1 2024 EPS momentum may be challenging. The company's ability to improve its profitability, manage cash flow effectively, and navigate industry challenges will be critical in determining its future financial performance.