Why did DRTS show zero EPS surprises in 2024?

Alpha Tau Medical Ltd. (DRTS) did not experience any EPS surprises in 2024 due to a combination of factors related to its financial performance and the nature of its business operations.

1. Financial Performance: Alpha Tau Medical reported a net loss of $31.75 million for the year ending December 31, 2024. This net loss, coupled with no reported revenue for the same period, indicates that the company's operations were not profitable. The absence of EPS surprises can be attributed to the fact that the company's earnings fell short of expectations, resulting in a negative EPS surprise.

2. Business Operations: Alpha Tau Medical is a clinical-stage oncology therapeutics company focused on the development of Alpha DaRT technology for cancer treatment. The company's emphasis on research and development (R&D) likely led to significant expenses related to clinical trials, regulatory approvals, and technology advancements. These expenses are not typically considered in the calculation of EPS and can negatively impact the company's financial performance, leading to no EPS surprises.
3. Industry and Market Factors: The biotechnology industry is known for its high-risk, high-reward nature. Companies in this sector often incur substantial expenses in pursuit of developing new therapies, which can lead to fluctuations in earnings and, consequently, EPS. The market may have had expectations of significant losses due to these factors, leading to no EPS surprises when the actual results were achieved.
4. Analyst Expectations: The average analyst price target for Alpha Tau Medical was $9, with a consensus rating of "Strong Buy". This suggests that analysts were not expecting a positive EPS surprise, as the stock price was trading below the average analyst target. The company's stock price was $2.52, which is significantly lower than the average analyst price target, indicating that the market may have had lower expectations for the company's earnings.

In conclusion, Alpha Tau Medical's zero EPS surprises in 2024 can be attributed to a combination of its financial performance, business operations, industry factors, and analyst expectations. The company's focus on R&D and clinical trials, coupled with its status as a clinical-stage oncology therapeutics company, likely contributed to its financial losses and the absence of EPS surprises.