Beyond Air, Inc. (XAIR) reports fourth-quarter losses and revenue estimates

Beyond Air, Inc. (XAIR) reported quarterly loss of $0.36 per share versus the Zacks Consensus Estimate of a loss of $0.47. For comparison, a year earlier the loss was $0.67 per share. These numbers have been adjusted for one-off items.

This quarterly report presented an earnings surprise of 23.40%. A quarter ago, it was expected that this company would post a loss of $0.61 per share when it actually produced a loss of $0.50, delivering a surprise of 18.03%.

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

Beyond Air, which belongs to the Zacks Medical – Biomedical and Genetics industry, posted revenues of $0.47 million for the quarter ended March 2024, representing a difference of 33.33% to the Zacks Consensus Estimate. For comparison, a year ago the revenues were zero.

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.

Beyond Air shares have lost about 36.7% since the beginning of the year compared to the S&P 500’s gain of 14.6%.

What’s next for Beyond Air?

Even though Beyond Air has underperformed the market this year, the question that comes to investors’ minds is: what’s next for the company’s 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.

Ahead of the earnings release, the trend in estimate revisions for Beyond Air: favorable. 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 -$0.44 on revenue of $1.42M for the coming quarter and -$1.45 on revenue of $12.82M 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 Biomedical and Genetics industry is currently in the top 35% 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.

Nurix Therapeutics, Inc. (NRIX), another company in the same industry, is yet to report earnings for the quarter ended May 2024.

The company is expected to report quarterly loss of $0.66 per share in the upcoming report, representing a year-over-year change of -46.7%. The consensus EPS estimate for the quarter has been revised upwards 7% over the last 30 days to the current level.

Nurix Therapeutics, Inc. revenues are expected to be will amount to USD 19.35 million, which means a decrease of 36.9% compared to the same quarter last year.

Want the latest recommendations from Zacks Investment Research? Today you can download the top 7 stocks for the next 30 days. Click to get this free report

Beyond Air, Inc. (XAIR): Free Stock Analysis Report

Nurix Therapeutics, Inc. (NRIX): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research