C4 Therapeutics, Inc. (CCCC) Reports Q4 Loss, Lowers Revenue Estimates

C4 Therapeutics, Inc. (CCCC) reported quarterly loss of $0.76 per share versus the Zacks Consensus Estimate of a loss of $0.72. This compares to a loss of $0.31 per share a year ago. These figures are adjusted for one-time items.

This quarterly report represents an earnings surprise of -5.56%. A quarter ago, the company was expected to post a loss of $0.65 per share when in fact it posted a loss of $0.65, which was no surprise at all.

Over the last four quarters, the company has beaten consensus earnings per share estimates only once.

C4 Therapeutics, Inc., which belongs to the Zacks Medical – Biomedical and Genetics industry, posted revenues of $2.85 million for the quarter ended December 2022, missing the Zacks Consensus Estimate by 66.66%. This compares to the prior-year revenues of $20.08 million. The company has topped the consensus revenue estimate only once over the last four quarters.

The sustainability of current share price movements based on recently released data and future earnings expectations will depend primarily on management’s commentary following the earnings conference call.

Shares of C4 Therapeutics, Inc. have risen about 0.3% since the beginning of the year, while the S&P 500 has risen 4%.

What’s next for C4 Therapeutics, Inc.?

Even though C4 Therapeutics, Inc. has underperformed the market this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable indicator that can help investors address this is the company’s earnings outlook. This includes not only the current consensus earnings expectations for the coming quarter(s), but also how those expectations have changed recently.

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.

Ahead of this earnings report, the estimate revision trend for C4 Therapeutics, Inc. is mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. As such, the stock is expected to perform in line with the market in the near term. 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 upcoming quarters and current fiscal year change in the coming days. The current consensus EPS estimate is -$0.80 on revenue of $7.3 million for the coming quarter and -$3.40 on revenue of $41.58 million for the current fiscal year.

Investors should be aware that the outlook for the industry can also have a significant impact on stock performance. In terms of the Zacks Industry Rank, Medical – Biomedical and Genetics currently ranks in the top 37% 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.

Rapt Therapeutics (RAPT), another company in the same industry, has not yet released its results for the quarter ending December 2022.

The company is expected to report quarterly loss of $0.67 per share in its upcoming report, which would represent a year-over-year change of -9.8%. The consensus earnings per share estimate for the quarter remained unchanged over the past 30 days.

Rapt Therapeutics revenue is expected to be $0.76 million, unchanged from the prior-year quarter.

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