Why did LYRA's Q3 2024 EPS drop sharply?

The EPS of Lyra Therapeutics, Inc. (LYRA) for Q3 2024 was -$0.18, which represents a significant drop from the previous quarter's EPS of -$0.32. Lyra Therapeutics' Q3 2024 EPS drop can be attributed to several factors: |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |LYRA|LYRA.O|Lyra Therapeutics|2024 Q1|20.45454545454546|-0.35|186| |LYRA|LYRA.O|Lyra Therapeutics|2024 Q2|-105.55555555555556|-0.74|186| |LYRA|LYRA.O|Lyra Therapeutics|2024 Q3|33.33333333333334|-0.18|186| 1. **Financial Performance**: Lyra Therapeutics reported a quarterly adjusted loss of 74 cents per share for the quarter ended in June, which was lower than the same quarter last year. This indicates a trend of improving financial performance, which may not directly explain the Q3 2024 drop but provides context for the overall trajectory. 2. **Earnings Estimates**: William Blair, an equities research firm, lifted its Q3 2024 earnings per share estimates for Lyra Therapeutics from ($0.31) to ($0.19), indicating a potential expectation of a lower EPS in Q3 2024 compared to the previous quarter. This adjustment in estimates suggests that the anticipated performance in Q3 2024 was not as optimistic as the previous quarter. 3. **Revenue and Profitability**: The company's revenue rose by 30.6% to $598.00 thousand compared to the same quarter last year, with analysts expecting $349.80 thousand. This increase in revenue could be a factor in the reduced EPS, as the company's profitability metrics may be influenced by both revenue and expenses. In conclusion, the Q3 2024 EPS drop of Lyra Therapeutics can be attributed to a combination of factors, including a potential decrease in earnings estimates, revenue growth, and profitability metrics. The company's financial performance is influenced by a complex interplay of revenue, expenses, and strategic initiatives, which collectively impact the EPS figures.