D-Wave Quantum Stock Falls 2% After Q2 Earnings Miss Estimate

D-Wave Quantum Inc. (QBTS) shares dropped 2% in premarket trading after Q2 earnings missed estimates, reporting an EPS of -$0.08, missing analyst expectations by $0.03. However, revenue exceeded Wall Street's forecast at $3.1 million. Despite the earnings miss, the stock has gained 58% over the past three months and 2,098% over the last year. Analyst sentiment has been mixed, with two EPS upgrades and one downgrade in the past 90 days.

D-Wave Quantum Inc. (QBTS) shares fell by nearly 2% in premarket trading on Thursday after the company reported a wider-than-expected second-quarter loss. The quantum computing firm posted an EPS of -$0.08, missing analyst expectations by $0.03. Despite this earnings miss, revenue came in at $3.1 million, comfortably beating Wall Street's forecast of $2.59 million [2].

The stock has shown impressive performance, trading around $17.58, marking a 58% gain over the past three months and an eye-popping 2,098% surge over the last year. Analyst sentiment has been mixed, with two EPS upgrades and one downgrade in the past 90 days [2].

CEO Alan Baratz commented on the results, stating, "Our second-quarter results demonstrate consistently strong performance across a multitude of technical and business metrics." The company's revenue jumped 42% year-over-year, surpassing the consensus estimate of $2.54 million. Additionally, D-Wave Computing ended the quarter with the highest cash balance in its history, exceeding $819 million [3].

While the near-term results remain volatile, investors seem to be betting on the long-term promise of quantum computing. The company's earnings story adds another layer to the broader tech earnings season, where innovation-heavy stocks are either soaring or sliding, depending on how closely they align with market expectations.

The average target price for D-Wave Quantum Inc. is $20.11, with a high estimate of $30.00 and a low estimate of $12.00, implying an upside of +14.40% from the current price of $17.58 [2].

References:
[1] https://finance.yahoo.com/news/d-wave-quantum-inc-qbts-121503950.html
[2] https://finance.yahoo.com/news/qbts-d-wave-quantum-stock-150743556.html
[3] https://www.tipranks.com/news/qbts-earnings-d-wave-computing-stock-dips-following-q2-earnings-miss