Why did ACLX's Q3 2024 EPS fall below forecasts?

Arcellx's Q3 2024 EPS fell below forecasts due to several factors:

1. **Revenue Shortfall**: The company's total revenue for the quarter was $26.03 million. This fell short of analyst estimates, indicating a shortfall in gross profit.

|code|Ticker|Name|Date|Total Revenue|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|ACLX|ACLX.O|Arcellx|2023 Q4|6.3148E7||185|
|ACLX|ACLX.O|Arcellx|2024 Q1|3.9256E7|-0.14|185|
|ACLX|ACLX.O|Arcellx|2024 Q2|2.7384E7|-0.51|185|
|ACLX|ACLX.O|Arcellx|2024 Q3|2.603E7|-0.48|185|

2. **Expense Factors**: Arcellx reported a negative return on equity of 12.42% and a negative net margin of 37.23%. These negative metrics suggest that the company's expenses exceeded its revenue, contributing to the EPS shortfall.
3. **Insider Transactions**: There were instances of insider selling, including Christopher Heery selling 10,901 shares for $711,835.30 on July 16, 2024. Insider selling can influence investor perceptions and may indicate a lack of confidence in future earnings prospects.
4. **Market Conditions**: The broader market conditions and biotech sector performance can also impact Arcellx's financial results. Investors should consider these external factors when analyzing the EPS shortfall.

In conclusion, Arcellx's Q3 2024 EPS fell below forecasts due to a combination of revenue shortfall, high expenses, insider transactions and market conditions.