Why did SGMO's Q3 2024 earnings surprise analysts?

Sangamo Therapeutics (SGMO) surprised analysts with its Q3 2024 earnings due to several key factors: 1. **Revenue Growth**: SGMO's total revenue for Q3 2024 was $49.41 million, which represented a significant year-over-year growth of 425.6%. This substantial increase outpaced analysts' expectations and was a major contributor to the earnings surprise. 2. **Expense Management**: The company's financial guidance for 2024 indicated a total operating expense range of approximately $150 million to $170 million. SGMO's ability to manage expenses effectively, potentially lower than anticipated, contributed to the positive earnings surprise. 3. **Strategic Initiatives**: Sangamo Therapeutics has been implementing strategic initiatives, as highlighted in its SEC 10-Q report for the quarter ended September 30, 2024. These initiatives likely improved operational efficiencies and profitability, supporting the better-than-expected earnings. 4. **Analyst Estimates**: Prior to the earnings release, analysts had estimated an EPS of -$0.03 for Q3 2024. SGMO reported an EPS of $0.04, which significantly beat this estimate by $0.07. This substantial positive variance underscored the company's strong financial performance. In summary, SGMO's Q3 2024 earnings surprise can be attributed to robust revenue growth, effective expense management, strategic initiatives, and exceeding analyst estimates. These factors combined to deliver a robust financial performance that surpassed market expectations.