What drove XOMA's surprising EPS growth in Q2 2024?

XOMA's EPS grew by 0.25 in Q2 2024, which is a positive surprise considering the market's expectations. To understand the factors behind this growth, we need to analyze XOMA's financial performance and the industry trends during that period. 1. **Revenue Increase**: XOMA reported a significant increase in revenue, with reported revenue of $1.5 million surpassing the estimated $1.33 million. This revenue growth is a direct result of the company's operational performance and market demand for its products or services. 2. **Cost Management**: XOMA's net loss improved from a year-over-year net loss of $9.8 million to $8.6 million. This improvement in net loss can be attributed to effective cost management. The company's general and administrative (G&A) expenses were $8.5 million for the quarter, indicating that the cost structure is being managed efficiently. 3. **Merger Impact**: XOMA assumed operations of Kinnate's pipeline and ongoing Phase 1 study after closing the Kinnate merger in Q2 2024. This strategic move likely enhanced the company's revenue potential and operational efficiency, contributing to the positive EPS surprise. In conclusion, XOMA's EPS growth in Q2 2024 can be attributed to a combination of revenue increase, effective cost management, and the impact of recent mergers and acquisitions. These factors collectively contributed to the company's improved financial performance and higher EPS. |code|Ticker|Name|Date|Estimate EPS|EPS Surprise|market_code| |---|---|---|---|---|---|---| |XOMA|XOMA.O|XOMA Royalty|2024 Q1|-0.81|-0.05|185| |XOMA|XOMA.O|XOMA Royalty|2024 Q2|-0.27|-0.01|185| |XOMA|XOMA.O|XOMA Royalty|2024 Q3|-0.44|-1.15|185| |XOMA|XOMA.O|XOMA Royalty|2024 Q4|-0.29|0.25|185|