Helius Medical Technologies, Inc. (HSDT) Reports Second Quarter Loss, Estimated Delay Revenue

Helius Medical Technologies, Inc. (HSDT) reported quarterly loss of $2.58 per share versus the Zacks Consensus Estimate of a loss of $1.53. For comparison, a year ago the loss was $2.80 per share. These numbers have been adjusted for one-off items.

This quarterly report represents an earnings surprise of -68.63%. A quarter ago, it was expected that this company would post a loss of $1.22 per share when it actually produced a loss of $1.65, delivering a surprise of -35.25%.

Over the last four quarters, the company has surpassed consensus EPS estimates only once.

Helius Medical Technologies, Inc., which belongs to the Zacks Medical – Instruments industry, posted revenues of $0.07 million for the quarter ended June 2021, missing the Zacks Consensus Estimate by 21.11%. For comparison, revenues from the previous year amounted to USD 0.13 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 mostly depend on management’s commentary on the earnings call.

Since the beginning of the year, shares of Helius Medical Technologies, Inc. increased by approximately 16.4% compared to the S&P 500 Index’s gain of 18.4%.

What’s next for Helius Medical Technologies, Inc.

Although Helius Medical Technologies, Inc. has underperformed the market this year, investors are wondering what’s next for its 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.

Helius Medical Technologies, Inc.’s estimate revision trend ahead of earnings release. was 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 -$1.32 on revenue of $0.11M for the coming quarter and -$6.09 on revenue of $0.44M 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 – Instruments industry is currently in the bottom 34% 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.

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