Is AQST's Q4 2024 EPS drop a long-term concern?
4/11/2025 01:19pm
**Aquestive Therapeutics' (AQST) Q4 2024 EPS drop may not be a long-term concern.** Here's why:
1. **Revenue Growth and Consistency**: AQST has shown revenue growth, with a reported $13.54 million for Q3 2024, an increase of 4.2% year-over-year. The company has also surpassed consensus revenue estimates three times over the last four quarters. This consistency in revenue growth indicates a strong market demand for the company's products.
2. **Earnings Performance Context**: The Q3 2024 EPS loss of $0.13 was a deterioration from the previous year's $0.03 loss. However, it's important to consider the context. AQST has only once surpassed consensus EPS estimates over the last four quarters, indicating that the Q4 2024 EPS drop may not be a significant deviation from the expected performance.
3. **Analyst Expectations and Ratings**: Despite the Q4 2024 EPS drop, analysts have maintained a positive outlook on AQST. The stock has a Zacks Rank #3 (Hold) rating, indicating a potential to perform in line with the broader market. Additionally, the consensus price target suggests an upside from the current price.
4. **Long-Term Strategic Positioning**: AQST's strategic focus on building a comprehensive portfolio that is molecule agnostic and can support the journey of any modality into high-volume settings could position the company well for future growth opportunities.
In conclusion, while the Q4 2024 EPS drop is a concern in the short term, the company's revenue growth, analyst optimism, and strategic positioning suggest that this may not be a long-term concern. Investors should monitor the company's performance closely, especially in the context of its strategic goals and market conditions.