Is TSHA's Q3 2024 EPS growth sustainable for long-term investors?

**Taysha Gene Therapies' (TSHA) Q3 2024 EPS growth may not be sustainable for long-term investors**. Here's why: 1. **Earnings Performance Context**: Taysha Gene Therapies reported an EPS of $0.92 for Q4 2023, surpassing the consensus of an EPS loss of $0.11. However, in Q3 2024, the EPS was -$0.09, which suggests a decline in profitability. |code|Ticker|Name|Date|Net Income YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---| |TSHA|TSHA.O|Taysha Gene|2024 Q1|-36.53955283168766|64.28571428571429|185| |TSHA|TSHA.O|Taysha Gene|2024 Q2|14.919912187982762|76.31578947368422|185| |TSHA|TSHA.O|Taysha Gene|2024 Q3|78.20082502754362|89.24731182795699|185| |TSHA|TSHA.O|Taysha Gene|2024 Q4|-139.34773046228608||185| 2. **Revenue and Growth Rates**: The company's total revenue decreased by 43.9%, and it missed the anticipated Q3 EPS. This decline in revenue and profitability raises concerns about the sustainability of the EPS growth. 3. **Clinical and Strategic Developments**: Despite the challenges, Taysha has made significant strides in its gene therapy programs and drug manufacturing processes. The company's ongoing clinical trials and FDA discussions for its lead candidate, TSHA-102, indicate a promising pipeline. 4. **Market Sentiment and Expectations**: The market expects Taysha to deliver an increase in earnings on lower revenues when reporting Q1 2024 earnings. This suggests that while there may be some positive sentiment, it is closely tied to specific developments and milestones rather than a broad-based confidence in sustained profitability. 5. **Financial Health and Future Prospects**: Taysha's stock price has been influenced by its earnings beat in Q4 2023 and the anticipation of positive results from ongoing clinical trials. However, the lack of sustained revenue growth and the recent negative EPS in Q3 2024 raise questions about the long-term financial health and profitability of the company. In conclusion, while Taysha Gene Therapies has shown potential with its gene therapy programs and strategic initiatives, the current EPS growth rate, coupled with a decline in revenue and profitability, makes it challenging to predict a sustainable long-term investment case based on the Q3 2024 EPS growth alone. Investors should closely monitor the company's clinical trial progress, FDA interactions, and financial performance to assess the true sustainability of the EPS growth and its implications for long-term investment.