Rapid Micro Biosystems, Inc. (RPID) reports first-quarter loss, tops revenue estimates

Rapid Micro Biosystems, Inc. (RPID) reported quarterly loss of $0.32 per share versus the Zacks Consensus Estimate of a loss of $0.36. That compares to a loss of $0.35 per share a year earlier. These numbers were adjusted for one-time items.

This quarterly report represents an earnings surprise of 11.11%. A quarter ago, it was expected that the company would post a loss of $0.38 per share when it actually produced a loss of $0.39, delivering a surprise of -2.63%.

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

Rapid Micro Biosystems, Inc., which belongs to the Zacks Medical – Instruments industry, posted revenues of $5.04 million for the quarter ended March 2023, surpassing the Zacks Consensus Estimate by 15.93%. This compares to revenues of $4.16 million in the prior year. The company has surpassed the consensus revenue estimate 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 mostly depend on management’s commentary on the earnings call.

Rapid Micro Biosystems, Inc. shares have fallen about 23% since the beginning of the year, while the S&P 500 has gained 5.8%.

What’s Next for Rapid Micro Biosystems, Inc.

While Rapid Micro Biosystems, Inc. has underperformed the market this year, investors are wondering what’s next for the stock?

There are no simple answers to this key question, but one reliable indicator 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 themselves or rely on a proven rating tool like the Zacks Rank, which has an impressive history of harnessing the power of earnings estimate revisions.

Rapid Micro Biosystems, Inc. has a mixed estimate revision trend ahead of its earnings release. While the magnitude and direction of estimate revisions could change following the company’s upcoming earnings report, the current status is a Zacks Rank of #3 (Hold). As such, the 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 coming quarters and current fiscal year change in the coming days. The current consensus EPS estimate is -$0.35 on $5.04M in revenues for the coming quarter and -$1.33 on $22.12M in revenues for the current fiscal year.

Investors should be aware that industry prospects can also have a material impact on stock performance. In terms of the Zacks Industry Rank, Medical – Instruments is currently in the top 49% 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, Silk Road Medical (SILK), has not yet released results for the quarter ending March 2023. The results are expected to be released on May 9.

In its upcoming report, the medical device maker is expected to report a quarterly loss of $0.39 per share, which would represent a year-over-year change of +18.8%. The consensus EPS estimate for the quarter was unchanged over the past 30 days.

Silk Road Medical revenue is expected to be $40.82 million, up 45.7% from the same quarter last year.

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