Forward-Looking Analysis
Precision BioSciences is set to report its Q2 2025 earnings on August 7th. Analysts forecast a decline in earnings by 7.8% per annum, contrasting with an expected annual revenue growth of 5%. Notably, earnings per share (EPS) is anticipated to grow by 18.4% annually, suggesting potential profitability improvements despite overall earnings decline. Recent updates indicate a downward adjustment in price targets alongside an increase in consensus revenue estimates by 47% as of August 11th, reflecting positive market sentiment. This suggests that revenue growth is likely a key driver for future performance. However, Precision BioSciences remains unprofitable, as forecasted over the next three years, with slow revenue growth compared to the US market average. Analyst coverage is low, which may affect the accuracy and reliability of these forecasts.
Historical Performance Review
Precision BioSciences reported a revenue of $29.00 thousand for Q1 2025, with a net loss of $20.57 million. The earnings per share (EPS) stood at a negative $2.21, highlighting continued challenges in profitability. Despite the gross profit aligning with revenue at $29.00 thousand, the company is facing substantial financial hurdles in its pursuit of growth and stability.
Additional News
Precision BioSciences has recently received FDA Rare Pediatric Disease Designation for its PBGENE-DMD program targeting Duchenne Muscular Dystrophy. This development accelerates the PBGENE-DMD project within its organic pipeline, marking a significant stride in its R&D initiatives. Additionally, Precision BioSciences was dropped from the Russell Microcap Growth Index as of June 30th, which might affect its visibility among investors. The company continues to focus on advancing its clinical trials, receiving U.S. FDA Fast Track Designation for PBGENE-HBV, aimed at addressing chronic hepatitis B.
Summary & Outlook
Precision BioSciences shows mixed signals in its financial health, with revenue growth projected at 5% per year and EPS improving at 18.4% per annum. The recent FDA designations offer promising growth catalysts, yet the company remains unprofitable and faces substantial challenges. Its removal from the Russell Microcap Growth Index adds to the risks. However, ongoing advancements in its pipeline may bolster future prospects. The outlook remains neutral, given the combination of potential upside from revenue and EPS growth against persistent earnings challenges and low analyst coverage.
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