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Schrodinger (SDGR) to Report Q1 Earnings: What's in Store?

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Schrödinger, Inc. (SDGR - Free Report) is scheduled to release first-quarter 2021 results on May 11, after the closing bell. In the last reported quarter, the company reported a negative earnings surprise of 200%.

Q1 Estimates

Currently, the Zacks Consensus Estimate for first-quarter revenues is pegged at $29.2 million, suggesting growth of 11.6% from the year-ago reported figure. The consensus estimate for the bottom line stands at a loss of 18 cents per share.

Factors to Note

Schrödinger is likely to have witnessed revenue growth in first-quarter 2021, driven by sustained uptake of its core technologies, comprising FEP+ and its enterprise solution – LiveDesign. Also, strength shown by Software revenue might have contributed to the possible improvement.

During fourth-quarter 2020, the company inked a strategic deal with Bristol Myers Squibb to discover, develop, and commercialize therapeutics in several disease areas. Per the agreement, the company got $55 million in an upfront payment and is eligible to receive up to $2.7 billion in preclinical, development, regulatory and sales-based milestone payments plus royalties on net sales of each product commercialized by Bristol Myers Squibb.

Schrodinger, Inc. Price and EPS Surprise

Schrodinger, Inc. Price and EPS Surprise

Schrodinger, Inc. price-eps-surprise | Schrodinger, Inc. Quote

Moreover, the company presented preclinical data on the company’s MALT1 inhibitor program at the American Society of Hematology (ASH) Annual Meeting. This exhibited that its MALT1 inhibitors showed anti-tumor activity alone as well as in combination with approved anti-cancer therapies in models of B-cell lymphoma.

In February 2021, Schrödinger extended its partnership with Google Cloud to further improve the speed and capacity of its computational platform, which can effectively triple the company’s prior throughput under the collaboration.

Moreover, the company released a major update to Schrödinger’s proprietary force field, known as OPLS4 that underlies its most powerful molecular design technologies, thereby enabling the way for better accuracy of the computational predictions.

These developments are likely to have contributed to the to-be-reported quarter’s performance.

What Our Quantitative Model Suggests

Per our proven model, a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here as you will see.

Earnings ESP: Schrödinger has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #4 (Sell). 

Stocks Worth a Look

Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.

National Vision Holdings, Inc. (EYE - Free Report) has an Earnings ESP of +1.02% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

American Well Corporation (AMWL - Free Report) has an Earnings ESP of +9.44% and a Zacks Rank of 3.

Evolus, Inc. (EOLS - Free Report) has an Earnings ESP of +3.36% and a Zacks Rank of 3.

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