How did CRNX's Q1 2024 earnings surprise the market?

Crinetics Pharmaceuticals (CRNX) experienced a notable decline in its Q1 2024 earnings, which fell short of market expectations, leading to a negative surprise.

1. **Earnings Per Share (EPS)**: CRNX reported an EPS of -$0.90 for Q1 2024, which was a significant negative surprise compared to the consensus estimate of -$0.89. This indicates that the company's performance was worse than what analysts had anticipated.

|code|Ticker|Name|Date|Total Revenue|Net Income|market_code|
|---|---|---|---|---|---|---|
|CRNX|CRNX.O|Crinetics|2023 Q2|988000|-5.0979E7|185|
|CRNX|CRNX.O|Crinetics|2023 Q3|346000|-5.7458E7|185|
|CRNX|CRNX.O|Crinetics|2023 Q4||-6.0097E7|185|
|CRNX|CRNX.O|Crinetics|2024 Q1|640000|-6.693E7|185|

2. **Revenue**: Although CRNX's total revenue for the quarter was $640,000, the company's earnings report indicated a year-over-year decrease in revenue, which could have contributed to the negative surprise. The company's revenue had decreased slightly to $4.0 million in 2023 from $4.7 million in 2022, suggesting a declining trend that may have influenced market expectations.
3. **Analyst Forecasts**: Prior to the earnings release, Cantor Fitzgerald had raised its FY2024 earnings per share estimates for CRNX, forecasting an EPS of ($2.96) for the year, up from their prior forecast of ($3.16). This suggests that the market was anticipating a slight improvement in earnings, which was not reflected in the Q1 2024 results.
4. **Market Reaction**: The negative surprise in CRNX's Q1 2024 earnings could lead to concerns among investors about the company's financial performance and future prospects. The company's stock price may experience volatility as a result of these disappointing results.

In conclusion, CRNX's Q1 2024 earnings fell below market expectations, with a significant negative surprise due to the lower-than-anticipated EPS and a continued decline in revenue. This could lead to uncertainty regarding the company's financial trajectory and potential impacts on investor sentiment.