Acer Therapeutics Inc. (ACER) Releases First Quarter Loss and Revenue Estimates

Acer Therapeutics Inc. (ACER) posted a quarterly loss of $0.49 per share against Zacks’ consensus estimate of a loss of $0.18. That compares to a loss of $0.11 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents a profit surprise of -172.22%. A quarter ago, this company was expected to post a loss of $0.08 per share when it actually produced a loss of $0.31, delivering a surprise of -287.50% .

In the past four quarters, the company has exceeded consensus EPS estimates twice.

Acer Therapeutics Inc., which is part of the Zacks Medical – Drugs industry, reported no revenue for the quarter ended March 2022, missing Zacks’ consensus estimate by 100%. That compares to revenues of $4 million a year ago. The company has been unable to beat consensus revenue estimates for the past four quarters.

The sustainability of the immediate stock price movement based on recently released numbers and future earnings forecasts will primarily depend on management’s comments on the earnings call.

Shares of Acer Therapeutics Inc. are down about 14.9% year-to-date compared to the -15.6% decline in the S&P 500.

What’s next for Acer Therapeutics Inc.

As Acer Therapeutics Inc. has outperformed the market so far this year, the question on investors’ minds is: what’s next for the stock?

There is no easy answer to this key question, but a reliable measure that can help investors answer it is the company’s earnings outlook. This includes not only current consensus earnings expectations for the upcoming quarter(s), but also how those expectations have changed recently.

Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Before that Press release, the trend of estimate revisions for Acer Therapeutics Inc. Mixed. While the magnitude and direction of estimate revisions may change following the release of the company’s earnings report, the current situation translates into a No. 3 (hold) Zacks ranking for the stock. Thus, the shares should move in line with the market in the near future. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how the estimates for the next few quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.28 on $5 million in revenue for the upcoming quarter and -$2.05 on $10.6 million in revenue for the current fiscal year.

Investors should be aware that the outlook for the sector can also have a significant impact on stock performance. In terms of Zacks industry rankings, Medical – Drugs is currently in the top 39% of over 250 Zacks industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.

Another stock in Zacks Medical’s broader sector, HEXO (HEXO), has yet to report results for the quarter ending April 2022.

This cannabis producer is expected to post a quarterly loss of $0.05 per share in its next report, representing a year-over-year change of +58.3%. The consensus EPS estimate for the quarter has been revised down 5% in the last 30 days from the current level.

HEXO’s revenue is expected to be $41.71 million, up 132.3% from the prior year quarter.

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It’s a little-known chemical company that’s up 65% year-on-year, but still very cheap. With relentless demand, rising earnings estimates for 2022 and $1.5 billion for stock buybacks, retail investors could jump in at any moment.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.