Is XOMA's Q3 2024 EPS trend sustainable?

**XOMA's Q3 2024 EPS trend is not currently forming a sustainable pattern.** Here's an analysis to support this conclusion:

1. **Recent Performance**: XOMA's recent performance has been positive, with a notable FDA approval for OJEMDA™, which has led to increased milestones and royalties. This approval is a significant catalyst for XOMA's financial performance.
2. **Financial Estimates**: However, the Q3 2024 EPS estimates from HC Wainwright forecast a negative earnings per share of ($0.32). This negative forecast suggests that the earnings trend may not be sustainable in the immediate term.
3. **Market Analysts' Views**: The variance in analysts' estimates between Leerink Partners, which lifted its EPS estimates, and HC Wainwright, which forecasted a negative EPS, indicates uncertainty around the sustainability of the EPS trend. While one analyst is optimistic, the other suggests potential challenges.
4. **Royalties and Milestones**: XOMA's future earnings are tied to royalties from OJEMDA™ and potential milestones. The sustainability of these earnings will depend on the continued success of OJEMDA™ and the achievement of future milestones.
5. **Rebranding and Strategic Focus**: XOMA's rebranding as XOMA Royalty Corporation signifies a strategic shift, which could indicate a focus on sustainability and long-term growth. However, the success of this rebranding and its impact on EPS sustainability are yet to be seen.

In conclusion, while XOMA's recent FDA approval and potential royalties offer a positive outlook, the negative EPS forecast and the variance in analysts' views suggest that the Q3 2024 EPS trend is not currently forming a sustainable pattern. The sustainability of XOMA's EPS will depend on the company's ability to generate royalties from OJEMDA™, achieve future milestones, and successfully execute its strategic rebranding.