Humacyte, Inc. (HUMA) reports fourth-quarter losses, estimated revenue shortfalls

Humacyte, Inc. (HUMA) reported quarterly loss of $0.21 per share versus the Zacks Consensus Estimate of a loss of $0.24. For comparison, a year earlier the loss was $0.22 per share. These numbers have been adjusted for one-off items.

This quarterly report presented an earnings surprise of 12.50%. A quarter ago, it was expected that this company would post a loss of $0.21 per share when it actually produced a loss of $0.25, delivering a surprise of -19.05%.

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

Humacyte, Inc., which belongs to the Zacks Medical – Biomedical and Genetics industry, posted zero earnings for the quarter ended December 2022, missing the Zacks Consensus Estimate by 100%. For comparison, revenues from the previous year amounted to USD 0.18 million. Over the last four quarters, the company has topped consensus revenue estimates only once.

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

Since the beginning of the year, shares of Humacyte, Inc. increased by approximately 46.4% compared to the S&P 500 index’s gain of 2.8%.

What’s next for Humacyte, Inc.

While Humacyte, Inc. has outperformed the market this year, 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 Humacyte, 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 -$0.23 on $0.27M in revenues for the coming quarter and -$0.96 on $1.3M in revenues 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 Biomedical and Genetics industry is currently in the top 35% of over 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.

Another company in the same industry, Synlogic, Inc. (SYBX), has not yet reported results for the quarter ended December 2022.

The company is expected to report quarterly loss of $0.26 per share in the upcoming report, representing a year-over-year change of -23.8%. The consensus EPS estimate for the quarter has been revised upwards by 9.6% over the last 30 days to the current level.

Synlogic, Inc. revenues are expected to be will amount to USD 0.4 million, which means a decrease of 32.2% compared to the same quarter last year.

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