What are analysts saying about RYTM's Q1 earnings forecast?
4/11/2025 06:44pm
**Analysts are concerned about RYTM's Q1 earnings outlook.** Here's a detailed analysis:
1. **Expected EPS and Revenue**: The estimated EPS for Rhythm Pharmaceuticals in Q1 2025 is -$0.69, which represents a significant negative impact on the company's profitability. The estimated revenue for the quarter is $39.77 million, indicating a potential shortfall compared to the previous year's revenue.
2. **Historical Performance**: In the past year, RYTM has beaten EPS estimates 100% of the time but has only beaten revenue estimates 50% of the time. This suggests that analysts are more confident about the company's earnings projections than its revenue projections.
3. **Revisions and Trends**: Over the last 3 months, EPS estimates have seen no upward revisions and 4 downward revisions. Similarly, revenue estimates have seen 1 upward revision and 3 downward revisions. This indicates a general trend of decreasing optimism among analysts regarding RYTM's Q1 performance.
4. **Previous Quarter's Performance**: RYTM's Q1 2024 earnings report revealed a quarterly loss of $2.35 per share, which was slightly worse than the expected loss of $2.34 per share. The company's revenue for the quarter was $25.97 million, missing the consensus estimate by 5.68%. This track record of not meeting expectations adds to the concerns about the upcoming earnings report.
5. **Market Sentiment and Institutional Activity**: Despite the negative outlook, Adage Capital Partners GP L.L.C. recently bought a new stake in Rhythm Pharmaceuticals, indicating some confidence from institutional investors. However, the company's stock has underperformed the market, losing about 4.6% since the beginning of the year.
In conclusion, while there is some institutional confidence, the overall sentiment among analysts is cautious, with a focus on the company's ability to meet revenue estimates and manage its expenses effectively to turn a profit.