Should investors worry about VNRX's EPS trend?
4/5/2025 02:26pm
**Investors should be cautious but not necessarily alarmed by VNRX's EPS trend.** Here's why:
1. **Recent Performance**: VNRX's most recent EPS was -$0.060 for the first quarter, which was worse than the analyst estimate of -$0.055. This indicates a continuing loss for the company, which is a red flag for investors concerned about profitability.
2. **Consistency and Trend**: The EPS has been negative for several periods, with no positive EPS revisions in the last 90 days. This suggests that the company's earnings are not expected to improve in the near term, which could be a cause for concern.
3. **Financial Health Concerns**: VolitionRx has been rated as having a "weak performance" in financial health. The company's stock has experienced significant drops, with a -26.370% decline in the last 12 months. This volatility and the lack of positive earnings revisions could indicate underlying financial challenges that investors should consider.
4. **Revenue Growth**: Despite the negative EPS, VNRX has shown strong revenue growth. For instance, Q4 2024 revenue exceeded forecasts, with a 59% year-over-year increase. This suggests that the company is growing, but profitability remains a concern.
5. **Analyst Expectations**: Analysts have raised EPS estimates in the past, such as anticipating a Q2 2024 EPS of -$0.09 per share, which is higher than the current EPS. This could be a sign that analysts expect the company's performance to improve in the future.
6. **Market Reaction**: The market has reacted negatively to the earnings reports, with the stock price dropping in the aftermath of the first quarter earnings release. However, the stock has also shown some positive movement, such as a 10.53% increase after earnings that met expectations.
In conclusion, while VNRX's EPS trend shows continued losses, it's important for investors to consider the company's revenue growth and analyst expectations. The mixed signals from earnings estimates and the market's reaction suggest that investors should monitor the company's performance closely but may not need to worry immediately if they are prepared for the possibility of continued losses. However, the weak financial health and ongoing profitability challenges warrant careful consideration.