Is RXST's Q4 2024 EPS decline a concern?

RxSight's Q4 2024 EPS decline is not a significant concern. Here's why:

1. Revenue Growth: RxSight has demonstrated robust revenue growth, with a 67.6% increase in the same quarter of the prior year. This indicates a strong market demand and the company's ability to capitalize on it.
2. Analyst Estimates: The company's revenue for Q4 2024 exceeded analyst estimates, with a reported revenue of $34.89 million compared to estimates of $32.33 million. This suggests that the company's performance is exceeding expectations.
3. Break-Even Earnings: RxSight reported break-even earnings per share (EPS) for Q3 2024, which is a significant improvement from a loss of $0.35 per share in the same quarter of the previous year. This indicates a positive trend in profitability.
4. Institutional Investor Confidence: Despite the EPS decline in Q4 2024, institutional investors have shown confidence in RxSight. Allspring Global Investments Holdings LLC reduced its holdings, but other investors like AQR Capital Management LLC grew their stock position. This mixed trend among institutional investors suggests that the decline in EPS may not be a major concern for all.
5. Stock Performance and Analyst Ratings: RxSight's stock has outperformed the market, with an increase of about 35.7% since the beginning of the year. Analysts have set positive price targets and ratings, such as BTIG Research's "buy" rating and Needham & Company LLC's "buy" rating. This indicates that the EPS decline may not overshadow the company's overall potential.

In conclusion, while the EPS decline in Q4 2024 is a concern, it is mitigated by the company's strong revenue growth, break-even earnings, and positive analyst ratings. The mixed trend among institutional investors also suggests that the decline may not be a major red flag.