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Ginkgo (DNA) to Report Q4 Earnings: What's in the Cards?
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We expect investors to focus on the sales performance of Ginkgo Bioworks Holdings, Inc.’s (DNA - Free Report) two business units when the company reports fourth-quarter and full-year 2023 results on Feb 29 after market close.
Let’s see how things have shaped up for the quarter to be reported.
Factors at Play
Ginkgo’s revenues comprise sales from its two business segments, namely — Biosecurity and Cell Engineering.
Total revenues are likely to have witnessed a decline in the to-be-reported quarter, owing to the expected ramp-down of the company’s K-12 COVID testing services.
In the last reported quarter, Cell Engineering services revenues were driven by a significantly expanded customer base. This is expected to have continued in the to-be-reported quarter.
Shares of Ginkgo have lost 9.6% in the past year compared with the industry’s decline of 7%.
Image Source: Zacks Investment Research
Biosecurity business revenues have been declining as the K-12 COVID testing business ended in the third quarter. This segment is now witnessing a transition toward emerging product lines that are more recurring in nature, such as federal and international partnerships supporting pathogen monitoring and biosecurity infrastructure development. Revenues from this segment are likely to have been driven by these businesses in the fourth quarter.
Owing to the strong growth in its business, Ginkgo increased its revenue outlook for the two business segments in the last reported quarter. Investors will be keen to know whether the company issued any revised outlook on the upcoming earnings call.
The activities related to the development of its business are most likely to have escalated Ginkgo’s operating expenses in the fourth quarter.
Surprise History
Ginkgo's earnings surprise record has been mixed so far, as it surpassed expectations in two of the trailing four quarters and met the same on the remaining two occasions. It has a trailing four-quarter earnings surprise of 24.45% on average. In the last reported quarter, DNA delivered in-line earnings.
Ginkgo Bioworks Holdings, Inc. Price and EPS Surprise
Our proven model does not conclusively predict an earnings beat for Ginkgo this time around. 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, which is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Ginkgo's Earnings ESP is 0.00% as the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at a loss of 9 cents per share.
Here are a few stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Compugen Ltd. (CGEN - Free Report) has an Earnings ESP of +451.63% and a Zacks Rank #2.
Compugen’s stock has surged 207.2% in the past year. CGEN beat earnings estimates in three of the last four quarters and missed the same on the other occasion. Compugen delivered an earnings surprise of 18.23% on average. CGEN will report fourth-quarter results on Mar 5.
Sarepta Therapeutics, Inc. (SRPT - Free Report) has an Earnings ESP of +306.25% and a Zacks Rank #3.
Sarepta Therapeutics’ stock has risen 15.6% in the past year. SRPT beat earnings estimates in each of the last four quarters. Sarepta Therapeutics delivered an earnings surprise of 48.67%, on average. SRPT will report fourth-quarter results on Feb 28.
Arcutis Biotherapeutics, Inc. (ARQT - Free Report) has an Earnings ESP of +25.58% and a Zacks Rank #3.
Arcutis’ stock has plunged 39.4% in the past year. ARQT beat earnings estimates in three of the last four quarters and missed the same on the other occasion. Arcutis delivered an earnings surprise of 9.23%, on average. ARQT will report fourth-quarter results on Feb 27.
Image: Bigstock
Ginkgo (DNA) to Report Q4 Earnings: What's in the Cards?
We expect investors to focus on the sales performance of Ginkgo Bioworks Holdings, Inc.’s (DNA - Free Report) two business units when the company reports fourth-quarter and full-year 2023 results on Feb 29 after market close.
Let’s see how things have shaped up for the quarter to be reported.
Factors at Play
Ginkgo’s revenues comprise sales from its two business segments, namely — Biosecurity and Cell Engineering.
Total revenues are likely to have witnessed a decline in the to-be-reported quarter, owing to the expected ramp-down of the company’s K-12 COVID testing services.
In the last reported quarter, Cell Engineering services revenues were driven by a significantly expanded customer base. This is expected to have continued in the to-be-reported quarter.
Shares of Ginkgo have lost 9.6% in the past year compared with the industry’s decline of 7%.
Image Source: Zacks Investment Research
Biosecurity business revenues have been declining as the K-12 COVID testing business ended in the third quarter. This segment is now witnessing a transition toward emerging product lines that are more recurring in nature, such as federal and international partnerships supporting pathogen monitoring and biosecurity infrastructure development. Revenues from this segment are likely to have been driven by these businesses in the fourth quarter.
Owing to the strong growth in its business, Ginkgo increased its revenue outlook for the two business segments in the last reported quarter. Investors will be keen to know whether the company issued any revised outlook on the upcoming earnings call.
The activities related to the development of its business are most likely to have escalated Ginkgo’s operating expenses in the fourth quarter.
Surprise History
Ginkgo's earnings surprise record has been mixed so far, as it surpassed expectations in two of the trailing four quarters and met the same on the remaining two occasions. It has a trailing four-quarter earnings surprise of 24.45% on average. In the last reported quarter, DNA delivered in-line earnings.
Ginkgo Bioworks Holdings, Inc. Price and EPS Surprise
Ginkgo Bioworks Holdings, Inc. price-eps-surprise | Ginkgo Bioworks Holdings, Inc. Quote
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Ginkgo this time around. 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, which is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Ginkgo's Earnings ESP is 0.00% as the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at a loss of 9 cents per share.
Zacks Rank: Ginkgo currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Compugen Ltd. (CGEN - Free Report) has an Earnings ESP of +451.63% and a Zacks Rank #2.
Compugen’s stock has surged 207.2% in the past year. CGEN beat earnings estimates in three of the last four quarters and missed the same on the other occasion. Compugen delivered an earnings surprise of 18.23% on average. CGEN will report fourth-quarter results on Mar 5.
Sarepta Therapeutics, Inc. (SRPT - Free Report) has an Earnings ESP of +306.25% and a Zacks Rank #3.
Sarepta Therapeutics’ stock has risen 15.6% in the past year. SRPT beat earnings estimates in each of the last four quarters. Sarepta Therapeutics delivered an earnings surprise of 48.67%, on average. SRPT will report fourth-quarter results on Feb 28.
Arcutis Biotherapeutics, Inc. (ARQT - Free Report) has an Earnings ESP of +25.58% and a Zacks Rank #3.
Arcutis’ stock has plunged 39.4% in the past year. ARQT beat earnings estimates in three of the last four quarters and missed the same on the other occasion. Arcutis delivered an earnings surprise of 9.23%, on average. ARQT will report fourth-quarter results on Feb 27.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.