Sight Sciences, Inc. (SGHT) reports second quarter loss, highest revenue estimates

Sight Sciences, Inc. (SGHT) reported a quarterly loss of $0.30 per share compared to the Zacks Consensus Estimate of a loss of $0.35. For comparison, a year ago the loss was $0.5 per share. These numbers have been adjusted for one-off items.

This quarterly report presented an earnings surprise of 14.29%. A quarter ago, it was expected that this company would post a loss of $0.41 per share when it actually produced a loss of $0.35, delivering a surprise of 14.63%.

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

Sight Sciences, Inc., which belongs to the Zacks Medical – Instruments industry, posted revenues of $23.47 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 5.31%. For comparison, revenues from the previous year amounted to $17.23 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 mostly depend on management’s commentary on the earnings call.

Shares of Sight Sciences, Inc. have lost about 36.2% since the beginning of the year compared to the S&P 500 index’s gain of 17.6%.

What’s next for Sight Sciences, Inc.

Although Sight Sciences, Inc. has underperformed the market this year, a question comes to investors’ minds: 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 Sight Sciences, Inc. is beneficial. 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 #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 -$0.29 on revenue of $23.9M for the coming quarter and -$1.25 on revenue of $91.57M 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, Medical – Instruments is currently in the top 38% 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.

InspireMD, Inc. (NSPR), another company in the same industry, has not yet released its results for the quarter ended June 2023. The results are expected to be released on August 8.

The company is expected to report quarterly loss of $0.17 per share in the upcoming report, representing a year-over-year change of +71.2%. The consensus EPS estimate for the quarter has not changed over the last 30 days.

InspireMD, Inc. revenues are expected to be will amount to $1.59 million, an increase of 3.9% compared to the same quarter last year.

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