Axsome Therapeutics (AXSM) is poised to report earnings per share (EPS) of approximately -$1.22 for the first quarter of 2024, reflecting a significant year-over-year decline of 369.2%. The consensus revenue estimate for Q1 2024 is $72.85 million, indicating a year-over-year decrease of 23.0%1.
- Historical Performance Context:
- In the previous quarter, AXSM reported an EPS of -$1.13 for Q1 2022, which was a 9.7% year-over-year decrease2.
- The company's EPS has shown a trend of increasing losses over the past year, with Q1 2023 reporting an EPS of -$1.04, Q2 2023 reporting an EPS of -$0.56, Q3 2023 reporting an EPS of -$0.61, and Q4 2023 reporting an EPS of -$1.213.
- Revenue Projection and Past Trends: The projected revenue for Q1 2024 is $72.85 million, which is a notable decrease from the previous year's revenue of $21.88 million1. However, it's important to note that AXSM has a history of revenue growth, with a 160% increase in revenues reported in Q1 2024 compared to the previous year4.
- Expense Insights: AXSM's increased expenses, particularly in research and development and selling, general, and administrative costs, may be contributing to the negative earnings. For instance, R&D expenses rose to $36.8 million in Q1 2024 from $17.8 million in Q1 2023, and SG&A expenses increased to $99 million in Q1 20244.
- Analyst Expectations: The current analyst average price target for AXSM is $173.27, indicating a "Strong Buy" consensus rating5. This suggests that analysts are optimistic about the company's long-term potential despite the current financial projections.
In conclusion, AXSM's Q1 2024 forecast reflects continued financial challenges with significant EPS and revenue declines. However, the company's track record of beating EPS estimates and the analyst consensus suggest hope for potential recovery and growth in the future.
4/7/2025 09:22am
