Impel Pharmaceuticals Inc. (IMPL) reports Q4 loss, highest revenue estimates

Impel Pharmaceuticals Inc. (IMPL) reported a quarterly loss of $0.97 per share compared to the Zacks Consensus Estimate of a loss of $1.04. For comparison, a year ago the loss was $1.07 per share. These numbers have been adjusted for one-off items.

This quarterly report presented an earnings surprise of 6.73%. A quarter ago, it was expected that this company would post a loss of $0.87 per share when it actually produced a loss of $1.31, delivering a surprise of -50.57%.

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

Impel Pharmaceuticals Inc., which belongs to the Zacks Medical – Drugs industry, posted revenues of $5.01 million for the quarter ended December 2022, surpassing the Zacks Consensus Estimate by 23.35%. For comparison, revenues from a year ago amounted to $0.58 million. The company has topped consensus revenue estimates three times over the last four quarters.

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.

Shares of Impel Pharmaceuticals Inc. have lost approximately 65.1% since the beginning of the year compared to the S&P 500 index increase by 2.8%.

What’s next for Impel Pharmaceuticals Inc.

Although Impel Pharmaceuticals Inc. has been underperforming the market so far this year, the question that arises for investors is: what’s next for the company’s shares?

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 the publication of the results, the trend of revisions of Impel Pharmaceuticals Inc. estimates. is beneficial. 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 #2 (Buy) for the stock. We can therefore expect that the company’s shares will outperform 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 -$1.07 on revenue of $4.15M for the coming quarter and -$2.31 on revenue of $27.32M 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 35% 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, Infinity Pharmaceuticals (INFI), is yet to report earnings for the quarter ended December 2022.

The drugmaker is expected to report a quarterly loss of $0.12 per share in its upcoming report, representing a year-over-year change of +7.7%. The consensus EPS estimate for the quarter has not changed over the last 30 days.

Infinity Pharmaceuticals’ revenue is expected to be $11.88 million, up 2,538.9% from the year-ago quarter.

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