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Is a Beat in the Cards for Twist (TWS) This Earnings Season?

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Twist Bioscience Corporation (TWST - Free Report) is scheduled to report financial results for second-quarter fiscal 2021 ended Mar 31, on May 6.

The company has a mixed track with earnings missing estimates in one of the last four quarters and beating in the remaining three, the average surprise being 3.88%. In the last reported quarter, the company beat expectations by 2.70%.

Twist Bioscience Corporation Price, Consensus and EPS Surprise

 

Twist Bioscience Corporation Price, Consensus and EPS Surprise

Twist Bioscience Corporation price-consensus-eps-surprise-chart | Twist Bioscience Corporation Quote

Let’s see how things have shaped up for this announcement.

Why a Likely Positive Surprise

Our proven model predicts an earnings beat for Twist this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: Earnings ESP for Twist is +0.33%.

Zacks Rank: It currently carries a Zacks Rank #3.

Factors At Play

Twist Bioscience is a synthetic biology and genomics company that has developed a disruptive DNA synthesis platform to industrialize the engineering of biology.

Revenues were $28.2 million for the first fiscal quarter due to growth in next-generation sequencing (NGS) tools, DNA Libraries and Synthetic Genes and similar levels have most likely been generated in the quarter under review.

On the last call, management stated that it expects continued growth and diversification of its revenue stream as it builds out its Factory of the Future as a second site in Oregon, continued focus on a business-to-business solution for multi-site institutions, and a full launch of its NGS methylation solution. Moreover, out-licensing of its first internally generated antibodies and continued progress for its DNA data storage business should positively impact business.

However, the outbreak of the COVID-19 pandemic might have had an adverse impact on the company’s upcoming results.

Research and development expenses for the first quarter of fiscal 2021 were $14.0 million, up from $10.3 million in the year-ago quarter and an increase in the same is likely to have been incurred in the quarter-to-be reported.

Selling, general and administrative expenses increased in the last-reported quarter, a trend that most likely prevailed in the previous quarter.

Other Developments

Twist Bioscience and Biotia, Inc., received Emergency Use Authorization from the FDA for the SARS-CoV-2 NGS Assay.

Share Price Performance

Twist’s stock has inched up 0.3% in the year so far, on par with the industry's growth.

 

Stocks to Consider

Here are a few stocks you may want to consider, a    s our model shows that these have the right combination of elements to post an earnings beat.

Ironwood Pharmaceuticals (IRWD - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank #1.  You can see the complete list of today’s Zacks #1 Rank stocks here.

Kala Pharmaceuticals, Inc. (KALA - Free Report) has an Earnings ESP of +3.45% and a Zacks Rank #2.  

bluebird bio (BLUE - Free Report) has an Earnings ESP of +0.74% and a Zacks Rank #3.

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