D-Wave Quantum Inc. (QBTS) recently released its quarterly earnings report, showing a loss of $0.14 per share, which fell short of the Zacks Consensus Estimate of a loss of $0.13. This marks an increase from the loss of $0.12 per share reported in the same quarter last year. The difference in earnings represents an unexpected change of -7.69% from the consensus estimate.
In the previous quarter, industry analysts predicted a loss of $0.12 per share for D-Wave Quantum Inc., but the company actually reported a loss of $0.20 per share, surprising investors with a deviation of -66.67%.
While D-Wave Quantum Inc. experienced revenue growth from $1.37 million in the same quarter last year to $1.71 million this year, it still fell short of the Zacks Consensus Estimate by 5.17%. This marks the fourth consecutive quarter in which the company failed to meet consensus revenue expectations.
The performance of D-Wave Quantum Inc. in the stock market largely hinges on the company’s upcoming earnings call. Investors will be closely monitoring management’s commentary on future earnings expectations to determine the sustainability of the stock’s immediate price movement.
Although D-Wave Quantum Inc. has outperformed the market this year with a 17.4% gain, investors are left wondering what lies ahead for the stock. Assessing the company’s earnings outlook can provide valuable insights for investors. Earnings estimate revisions have shown a strong correlation with short-term stock movements. To track these revisions effectively, investors can rely on the Zacks Rank, a reputable rating tool with a history of utilizing the power of earnings estimate revisions.
Prior to this earnings report, D-Wave Quantum Inc. experienced favorable estimate revisions. While these revisions may change following the release of the company’s earnings report, the current status translates into a Zacks Rank #2 (Buy). This indicates that the company is expected to outperform the market in the near future.
Looking ahead, it will be intriguing to observe how estimates for the upcoming quarters and the current fiscal year evolve over time. The current consensus EPS estimate for the next quarter is -$0.13, with projected revenues of $3.08 million. For the full fiscal year, the consensus EPS estimate is -$0.53, with projected revenues of $11 million.
Investors should also consider the overall outlook for the software industry, as it can significantly impact the performance of stocks within the sector. Currently, the Internet – Software industry is ranked in the top 35% of all Zacks industries, based on its positive performance. Research has shown that the top 50% of Zacks-ranked industries tend to outperform the bottom 50% by a factor of more than 2 to 1. This information can provide investors with valuable context when evaluating the potential of D-Wave Quantum Inc. in a highly competitive market.
Another relevant player in the same industry, Paycor HCM, Inc. (PYCR), is set to announce its quarterly results for the period ending June 2023 on August 16. Analysts expect the company to report quarterly earnings of $0.06 per share, a 50% increase compared to the previous year. However, the consensus EPS estimate for the quarter has been adjusted 28.6% lower over the last 30 days.
Paycor HCM, Inc. is projected to generate $136.47 million in revenues for the quarter, representing a significant 23% growth from the same quarter last year.
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