Chinook Therapeutics, a drug development company in the Zacks Medical – Drugs industry, recently announced a quarterly loss of $0.85 per share, missing the Zacks Consensus Estimate of a loss of $0.80. This is a significant drop from the loss of $0.54 per share reported a year ago, and the company has only surpassed consensus EPS estimates once in the past four quarters. Despite this, the company’s revenues of $1.83 million for the quarter ended March 2023 surpassed the Zacks Consensus Estimate by 292.28%, and Chinook has topped consensus revenue estimates three times in the last four quarters.
Quarterly Earnings Report
Chinook Therapeutics reported a quarterly loss of $0.85 per share, which missed the Zacks Consensus Estimate of a loss of $0.80. However, the company’s revenues for the quarter ended March 2023 surpassed the Zacks Consensus Estimate by 292.28%. While the company has only surpassed consensus EPS estimates once in the past four quarters, it has topped consensus revenue estimates three times in the same period.
Earnings Outlook
Chinook Therapeutics underperformed the market so far this year, leaving investors wondering about the stock’s future. The company’s earnings outlook, which includes current consensus earnings expectations for the coming quarter(s) and how these expectations have changed lately, can be a reliable measure to address this question. However, the current status translates into a Zacks Rank #3 (Hold) for the stock, meaning that the shares are expected to perform in line with the market in the near future.
Impact of the Industry Outlook
Investors should be mindful that the outlook for the industry can have a material impact on the performance of the stock as well. Currently, the Medical – Drugs industry ranks in the top 42% of the 250 plus Zacks industries, and research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by more than 2 to 1. Another stock from the same industry, Harpoon Therapeutics, Inc., is expected to post quarterly losses of $0.42 per share in its upcoming report, which represents a year-over-year change of +32.3%.
Conclusion
Chinook Therapeutics recently reported a quarterly loss of $0.85 per share, missing the Zacks Consensus Estimate. Despite this, the company’s revenues for the quarter ended March 2023 surpassed the Zacks Consensus Estimate by 292.28%. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock. As such, the current status of a Zacks Rank #3 (Hold) for the stock means that it is expected to perform in line with the market in the near future.