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Ginkgo (DNA) to Report Q2 Earnings: What's in the Cards?
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We expect investors to focus on the sales performance of Ginkgo Bioworks Holdings, Inc.’s (DNA - Free Report) two business units when the company reports second-quarter 2024 results next month.
Ginkgo's earnings met expectations in each of the trailing four quarters.
Let’s see how things have shaped up for the quarter to be reported.
Factors at Play
Ginkgo’s revenues comprise sales from its two business segments — Biosecurity and Cell Engineering.
Total revenues are likely to have declined in the to-be-reported quarter, owing to the expected ramp-down of the company’s K-12 COVID testing services.
In the last reported quarter, Cell Engineering services revenues decreased owing to a decline in revenues from early-stage customers. It remains to be seen whether the same trend continued in the second quarter.
Shares of Ginkgo have plunged 80.1% so far this year compared with the industry’s decline of 1.9%.
Image Source: Zacks Investment Research
Biosecurity business revenues have been declining since the K-12 COVID testing business ended. This segment has been witnessing a transition toward emerging product lines that are more recurring. The company continues to build both domestic and international infrastructure for biosecurity. It remains to be seen whether revenues from this segment improved in the to-be-reported quarter.
Owing to a weaker-than-expected revenue ramp-up in the ongoing year, Ginkgo revised its expectation for Cell Engineering Services revenues to $120-140 million for 2024. The company expects revenues from the Biosecurity segment to be at least $50 million in 2024.
Operating expenses declined in the last reported quarter owing to the cost-reduction actions completed in 2023. Expenses are likely to have declined in the second quarter, too.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Ginkgo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Ginkgo's Earnings ESP is 0.00% as the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at a loss of 8 cents per share.
Here are some stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Krystal Biotech, Inc. (KRYS - Free Report) has an Earnings ESP of +34.00% and a Zacks Rank #2.
Shares of Krystal Biotech have surged 69.9% in the year-to-date period. Earnings of Krystal Biotech beat estimates in two of the last four quarters and missed on the remaining two occasions. KRYS delivered an average negative earnings surprise of 21.46% in the last four quarters.
Adverum Biotechnologies, Inc. (ADVM - Free Report) has an Earnings ESP of +1.38% and a Zacks Rank #3.
Shares of Adverum Biotechnologies have gained 7.4% in the year-to-date period. Earnings of Adverum Biotechnologies beat estimates in two of the last four quarters and missed on the remaining two occasions. ADVM delivered an average negative earnings surprise of 1.55% in the last four quarters.
Amgen Inc. (AMGN - Free Report) has an Earnings ESP of +0.48% and a Zacks Rank #3.
Shares of Amgen have risen 16.1% year to date. Amgen beat earnings estimates in each of the trailing four quarters. AMGN delivered an average earnings surprise of 6.42% in the last four quarters. AMGN is set to report second-quarter earnings on Aug 6.
Image: Bigstock
Ginkgo (DNA) to Report Q2 Earnings: What's in the Cards?
We expect investors to focus on the sales performance of Ginkgo Bioworks Holdings, Inc.’s (DNA - Free Report) two business units when the company reports second-quarter 2024 results next month.
Ginkgo's earnings met expectations in each of the trailing four quarters.
Let’s see how things have shaped up for the quarter to be reported.
Factors at Play
Ginkgo’s revenues comprise sales from its two business segments — Biosecurity and Cell Engineering.
Total revenues are likely to have declined in the to-be-reported quarter, owing to the expected ramp-down of the company’s K-12 COVID testing services.
In the last reported quarter, Cell Engineering services revenues decreased owing to a decline in revenues from early-stage customers. It remains to be seen whether the same trend continued in the second quarter.
Shares of Ginkgo have plunged 80.1% so far this year compared with the industry’s decline of 1.9%.
Image Source: Zacks Investment Research
Biosecurity business revenues have been declining since the K-12 COVID testing business ended. This segment has been witnessing a transition toward emerging product lines that are more recurring. The company continues to build both domestic and international infrastructure for biosecurity. It remains to be seen whether revenues from this segment improved in the to-be-reported quarter.
Owing to a weaker-than-expected revenue ramp-up in the ongoing year, Ginkgo revised its expectation for Cell Engineering Services revenues to $120-140 million for 2024. The company expects revenues from the Biosecurity segment to be at least $50 million in 2024.
Operating expenses declined in the last reported quarter owing to the cost-reduction actions completed in 2023. Expenses are likely to have declined in the second quarter, too.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Ginkgo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Ginkgo's Earnings ESP is 0.00% as the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at a loss of 8 cents per share.
Zacks Rank: Ginkgo currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ginkgo Bioworks Holdings, Inc. Price and EPS Surprise
Ginkgo Bioworks Holdings, Inc. price-eps-surprise | Ginkgo Bioworks Holdings, Inc. Quote
Stocks to Consider
Here are some stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Krystal Biotech, Inc. (KRYS - Free Report) has an Earnings ESP of +34.00% and a Zacks Rank #2.
Shares of Krystal Biotech have surged 69.9% in the year-to-date period. Earnings of Krystal Biotech beat estimates in two of the last four quarters and missed on the remaining two occasions. KRYS delivered an average negative earnings surprise of 21.46% in the last four quarters.
Adverum Biotechnologies, Inc. (ADVM - Free Report) has an Earnings ESP of +1.38% and a Zacks Rank #3.
Shares of Adverum Biotechnologies have gained 7.4% in the year-to-date period. Earnings of Adverum Biotechnologies beat estimates in two of the last four quarters and missed on the remaining two occasions. ADVM delivered an average negative earnings surprise of 1.55% in the last four quarters.
Amgen Inc. (AMGN - Free Report) has an Earnings ESP of +0.48% and a Zacks Rank #3.
Shares of Amgen have risen 16.1% year to date. Amgen beat earnings estimates in each of the trailing four quarters. AMGN delivered an average earnings surprise of 6.42% in the last four quarters. AMGN is set to report second-quarter earnings on Aug 6.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.