What to Expect from Arcus Biosciences's Earnings

Arcus Biosciences RCUS will release its quarterly earnings report on Tuesday, 2025-05-06. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Arcus Biosciences to report an earnings per share (EPS) of $-1.01.

Arcus Biosciences bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Performance in Previous Earnings

During the last quarter, the company reported an EPS beat by $0.17, leading to a 0.98% drop in the share price on the subsequent day.

Here's a look at Arcus Biosciences's past performance and the resulting price change:

Tracking Arcus Biosciences's Stock Performance

Shares of Arcus Biosciences were trading at $9.12 as of May 02. Over the last 52-week period, shares are down 42.29%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.

Analysts' Take on Arcus Biosciences

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Arcus Biosciences.

The consensus rating for Arcus Biosciences is Neutral, based on 5 analyst ratings. With an average one-year price target of $19.6, there's a potential 114.91% upside.

Analyzing Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Ardelyx, Vir Biotechnology and CareDx, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Ardelyx, with an average 1-year price target of $10.9, suggesting a potential 19.52% upside.
• Analysts currently favor an Buy trajectory for Vir Biotechnology, with an average 1-year price target of $45.25, suggesting a potential 396.16% upside.
• Analysts currently favor an Neutral trajectory for CareDx, with an average 1-year price target of $31.2, suggesting a potential 242.11% upside.

Peers Comparative Analysis Summary

Within the peer analysis summary, vital metrics for Ardelyx, Vir Biotechnology and CareDx are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Arcus Biosciences ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

About Arcus Biosciences

Arcus Biosciences Inc is a clinical-stage biopharmaceutical company. It develops immunotherapies for the treatment of cancer. The company focuses on an ATP-adenosine pathway, which is a key driver of immunosuppression in the tumor microenvironment to create and optimize differentiated small-molecule immuno-oncology product candidates. Its product pipeline includes Domvanalimab, Etrumadenant, AB598, Casdatifan among others. Arcus conducts clinical trials for different types of cancers such as Lung, Colorectal, Pancreatic, and others. The company operates through a single segment which is the business of developing and commercializing immunotherapies.

Breaking Down Arcus Biosciences's Financial Performance

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Arcus Biosciences's financials over 3 months reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -16.13% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Arcus Biosciences's net margin excels beyond industry benchmarks, reaching -361.54%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Arcus Biosciences's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -17.9%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Arcus Biosciences's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -7.83%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Arcus Biosciences's debt-to-equity ratio is below the industry average. With a ratio of 0.12, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Arcus Biosciences visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.