Arcus Biosciences Plunges 11.21% on Earnings Miss

Arcus Biosciences's stock price dropped by 11.21% in pre-market trading on May 7, 2025, marking a significant decline for the biotechnology company.

Arcus Biosciences reported its Q1 2025 earnings, which fell short of analyst expectations. The company's earnings per share (EPS) missed the forecast by 12 cents, coming in at -$1.14, while revenue for the quarter was $28 million, a significant shortfall from the expected $32.61 million. This earnings miss was attributed to various factors, including manufacturing ramp-up issues and increased expenses.

The company's quarterly loss of $1.14 per share was worse than the Zacks Consensus Estimate of a loss of $1.02. This represents an earnings surprise of -11.76%. Over the last four quarters, Arcus Biosciences has surpassed consensus EPS estimates only twice, indicating a pattern of underperformance. The company's revenue for the quarter ended March 2025 was $28 million, missing the Zacks Consensus Estimate by 14.24%. This compares to year-ago revenues of $145 million, highlighting a significant decline in revenue.

Despite the underperformance, some analysts remain optimistic about the company's future prospects. The current consensus EPS estimate for the coming quarter is -$1.08 on $30.7 million in revenues, and -$4.13 on $123.83 million in revenues for the current fiscal year. The estimate revisions trend for Arcus Biosciences is currently favorable, which translates into a Zacks Rank #2 (Buy) for the stock. This suggests that the shares are expected to outperform the market in the near future.