Can SLGL sustain its Q2 2024 EPS growth momentum?

**Sol-Gel Technologies Ltd. (SLGL) faces challenges in sustaining its Q2 2024 EPS growth momentum.** Here's why:

1. **Earnings Projection and Recent Performance**:
- SLGL's Q2 2024 EPS was $0.07, with a consensus estimate for the current fiscal year being -$0.83. This indicates significant uncertainty and potential decline in earnings.
- The company's revenue for the quarter was $0.45 million, which was slightly above analysts’ expectations of $0.27 million. This modest revenue growth may not be enough to support substantial EPS growth.

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|SLGL|SLGL.O|Sol-gel|2023 Q3|-40|-0.21|186|
|SLGL|SLGL.O|Sol-gel|2024 Q1|46.51162790697674|-0.23|186|
|SLGL|SLGL.O|Sol-gel|2024 Q2|131.81818181818184|0.07|186|

2. **Financial Health Indicators**:
- SLGL has a negative net margin of 1,329.13% and a negative return on equity of 56.20%. These figures suggest that the company is not profitable and is struggling with financial health, which could hinder its ability to sustain EPS growth.
- The company's stock has a price-to-earnings ratio of -0.95, which is negative and indicates that the company is not generating earnings to support its stock price.
3. **Market Sentiment and Analyst Ratings**:
- Short interest in SLGL has grown significantly, with a total of 9,900 shares shorted as of May 15, 2024. This increase in short interest can be a bearish signal, suggesting that investors are betting against the stock's future price.
- Analysts have set a low price target of $6.00, which is a significant downside from the current price, indicating a lack of confidence in the stock's short-term prospects.
4. **Industry and Competitive Landscape**:
- The sol-gel coatings market is growing due to its unique properties and increasing demand across various sectors. However, SLGL's position within this market and its ability to capitalize on this growth are uncertain.
- The company faces competition and the need to innovate to maintain its market position and profitability.

In conclusion, while SLGL showed a slight improvement in EPS in Q2 2024, the overall financial health of the company, market sentiment, and competitive pressures suggest that sustaining this growth momentum will be challenging. The company's negative net margin, negative return on equity, and the expectations of a significant EPS decline in the current fiscal year indicate a precarious financial situation.