Can LCTX sustain its EPS growth beyond 2024?

**Lineage Cell Therapeutics (LCTX) faces challenges in sustaining its EPS growth beyond 2024.** Here's why:

1. **Current Financial Performance and Challenges**:
- LCTX reported a quarterly loss of $0.01 per share in Q4 2024, which is an improvement from the consensus estimate of a loss of $0.04 per share. However, the company has been inconsistent in meeting EPS estimates, with a history of beating estimates in some quarters and not others.
- The company's revenue has been volatile, with a significant increase in the most recent quarter, but a decline year-over-year.

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|LCTX|LCTX.A|Lineage Cell|2024 Q1|-33.33333333333334|-0.04|170|
|LCTX|LCTX.A|Lineage Cell|2024 Q2|0|-0.03|170|
|LCTX|LCTX.A|Lineage Cell|2024 Q3|50|-0.02|170|

|code|Ticker|Name|Date|P/E(TTM)|market_code|
|---|---|---|---|---|---|
|LCTX|LCTX.A|Lineage Cell|20240408|-11.729273|170|
|LCTX|LCTX.A|Lineage Cell|20240409|-11.170736|170|
|LCTX|LCTX.A|Lineage Cell|20240410|-10.771781|170|
|LCTX|LCTX.A|Lineage Cell|20240411|-11.250527|170|
|LCTX|LCTX.A|Lineage Cell|20240412|-10.372827|170|
|LCTX|LCTX.A|Lineage Cell|20240415|-9.973872|170|
|LCTX|LCTX.A|Lineage Cell|20240416|-9.175962|170|
|LCTX|LCTX.A|Lineage Cell|20240417|-10.293036|170|
|LCTX|LCTX.A|Lineage Cell|20240418|-9.574917|170|
|LCTX|LCTX.A|Lineage Cell|20240419|-9.17813|170|

2. **Market Analysts' Perspectives**:
- Analysts have set a strong buy consensus rating for LCTX, with an average analyst price target of $5.29, indicating potential upside from the current price. However, this target is significantly higher than the current price, suggesting that achieving this target may take time.
- Craig-Hallum analyst Albert Lowe recently adjusted LCTX's price target to $3.00, down from $4.00, reflecting a more cautious outlook.

3. **Strategic Developments and Future Prospects**:
- LCTX has made significant progress in its cell therapy programs, particularly in collaboration with Genentech for the OpRegen program. However, the realization of these programs' full potential and their impact on revenue and EPS growth is uncertain.
- The company's manufacturing capabilities have been highlighted, but the scalability and commercial viability of these capabilities have not been conclusively demonstrated.
4. **Financial Health and Growth Prospects**:
- LCTX has been profitable in certain quarters but has also incurred significant losses, which could impact its ability to sustain EPS growth.
- The company's financial position appears robust with approximately $53.3 million in cash reserves, which could support operations until at least 2027.
5. **Market Position and Competition**:
- LCTX operates in the biotechnology sector, which is highly competitive and characterized by rapid technological change and regulatory challenges.
- The company's P/E ratio has been negative in some periods, which may indicate that the market has concerns about its profitability or the need for further capital raises.

In conclusion, while LCTX has shown potential in its cell therapy programs and has received positive analyst ratings, the sustainability of its EPS growth beyond 2024 is uncertain. The company's future performance will likely depend on the successful commercialization of its pipeline, management's ability to control costs, and the company's financial position.