Century Therapeutics, Inc. (IPSC) Reports First Quarter Loss, Estimated Delay Revenue

Century Therapeutics, Inc. (IPSC) reported a quarterly loss of $0.53 per share, in line with the Zacks Consensus Estimate. For comparison, a year earlier the loss was $0.66 per share. These numbers have been adjusted for one-off items.

A quarter ago, it was expected that this company would post a loss of $0.60 per share when it actually produced a loss of $0.55, delivering a surprise of 8.33%.

The company has topped consensus EPS estimates twice over the last four quarters.

Century Therapeutics, Inc., which belongs to the Zacks Medical – Drugs industry, posted revenues of $1.72 million for the quarter ended March 2023, missing the Zacks Consensus Estimate by 23.89%. For comparison, revenues from a year ago amounted to $1.06 million. The company has topped consensus revenue estimates twice over the last four quarters.

The sustainability of the immediate share price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

Century Therapeutics, Inc. stock have lost about 33.1% since the beginning of the year compared to the S&P 500 index’s gain of 7.8%.

What’s next for Century Therapeutics, Inc.

Although this year Century Therapeutics, Inc. has so far underperformed the market, the question that arises for investors is: what’s next for the stock?

There are no simple answers to this key question, but one reliable measure that can help investors address this issue is the company’s earnings prospects. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Prior to earnings release, estimate revision trend for Century Therapeutics, Inc. is mixed. While the magnitude and direction of estimate revisions may change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) stock. Therefore, the company’s stock is expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the next quarters and the current fiscal year change in the coming days. The current consensus EPS estimate is -$0.54 on revenue of $3.01M for the coming quarter and -$2.06 on revenue of $11.51M for the current fiscal year.

Investors should be aware that the outlook for the industry may also have a significant impact on share prices. In terms of the Zacks Industry Rank, the Medical – Drugs industry is currently in the top 43% of the 250+ Zacks industries. Our research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One more company in the same industry, Catalent (CTLT), is yet to report results for the quarter ending March 2023. The results are expected to be released on May 15.

The drug delivery technology maker is expected to post quarterly earnings of $0.49 per share in its upcoming report, representing a year-over-year change of -52.9%. The consensus EPS estimate for the quarter has been revised 21.2% down to the current level over the last 30 days.

Catalent’s revenue is expected to be $1.08 billion, down 14.9% from the year-ago quarter.

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