Research Analysts Set Expectations for RVMD FY2029 Earnings

Key Points

• Brookline cut its earnings forecasts, lowering Revolution Medicines’ FY2029 EPS estimate to $8.49 from $8.94 and forecasting FY2030 EPS of $17.41. It maintained a Buy rating and $318 price target.
• Third-quarter revenue was $197.6 million, well above the $25.58 million consensus, while the loss of $1.90 per share was narrower than expected. The revenue surge was largely attributed to early uptake of RASONQUE.
• The European Medicines Agency’s CHMP recommended marketing authorization for RASONQUE, while the stock’s analyst consensus remained Moderate Buy with an average price target of $259.65.

Revolution Medicines, Inc. (NASDAQ:RVMD - Free Report) - Brookline Capital Markets reduced their FY2029 EPS estimates for Revolution Medicines in a research note issued on Wednesday, November 4th. Brookline Capital Markets analyst L. Cann now forecasts that the company will post earnings per share of $8.49 for the year, down from their prior estimate of $8.94. Brookline Capital Markets currently has a "Buy" rating and a $318.00 price target on the stock. The consensus estimate for Revolution Medicines' current full-year earnings is ($8.94) per share. Brookline Capital Markets also issued estimates for Revolution Medicines' FY2030 earnings at $17.41 EPS.

A number of other brokerages also recently commented on RVMD. Raymond James Financial reaffirmed a "strong-buy" rating and issued a $248.00 price target on shares of Revolution Medicines in a report on Thursday, August 27th. Oppenheimer boosted their price objective on Revolution Medicines from $230.00 to $260.00 and gave the stock an "outperform" rating in a research note on Thursday, August 27th. HC Wainwright upped their price objective on Revolution Medicines from $195.00 to $280.00 and gave the company a "buy" rating in a research report on Thursday, August 27th. Wedbush raised their price objective on Revolution Medicines from $201.00 to $225.00 and gave the company an "outperform" rating in a research note on Thursday, August 27th. Finally, Sanford C. Bernstein lifted their target price on Revolution Medicines from $151.00 to $179.00 and gave the stock a "market perform" rating in a report on Friday, August 21st. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Revolution Medicines has an average rating of "Moderate Buy" and a consensus price target of $259.65.

Revolution Medicines Price Performance

Revolution Medicines stock opened at $177.65 on Friday. The company's 50-day moving average price is $197.46 and its 200-day moving average price is $157.18. Revolution Medicines has a twelve month low of $58.91 and a twelve month high of $224.31. The company has a debt-to-equity ratio of 0.40, a quick ratio of 11.38 and a current ratio of 11.38.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last issued its quarterly earnings data on Wednesday, November 4th. The company reported ($1.90) EPS for the quarter, topping analysts' consensus estimates of ($2.35) by $0.45. The business had revenue of $197.56 million during the quarter, compared to analysts' expectations of $25.58 million. During the same period in the previous year, the business earned ($1.61) earnings per share.

Insider Transactions at Revolution Medicines

In related news, CFO Jack Anders sold 4,053 shares of Revolution Medicines stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $199.24, for a total transaction of $807,519.72. Following the completion of the transaction, the chief financial officer directly owned 119,216 shares of the company's stock, valued at approximately $23,752,595.84. The trade was a 3.29% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Elizabeth Anderson sold 10,143 shares of Revolution Medicines stock in a transaction dated Tuesday, September 22nd. The stock was sold at an average price of $193.04, for a total transaction of $1,958,004.72. Following the transaction, the director directly owned 4,333 shares of the company's stock, valued at approximately $836,442.32. This represents a 70.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 290,991 shares of company stock worth $59,422,765. 7.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. R Squared Ltd bought a new position in shares of Revolution Medicines during the third quarter valued at approximately $304,000. Fifth Third Bancorp increased its holdings in Revolution Medicines by 56.2% during the third quarter. Fifth Third Bancorp now owns 4,100 shares of the company's stock valued at $842,000 after buying an additional 1,475 shares during the period. Maryland State Retirement & Pension System increased its holdings in Revolution Medicines by 14.6% during the third quarter. Maryland State Retirement & Pension System now owns 11,608 shares of the company's stock valued at $2,383,000 after buying an additional 1,478 shares during the period. Ritholtz Wealth Management increased its holdings in Revolution Medicines by 10.6% during the third quarter. Ritholtz Wealth Management now owns 4,480 shares of the company's stock valued at $920,000 after buying an additional 429 shares during the period. Finally, Lido Advisors LLC bought a new position in Revolution Medicines in the third quarter worth approximately $1,687,000. Institutional investors own 94.34% of the company's stock.

Key Stories Impacting Revolution Medicines

Here are the key news stories impacting Revolution Medicines this week:

• Positive Sentiment: Third-quarter revenue reached $197.6 million, far above the $25.58 million consensus estimate. Nearly all of it came from RASONQUE during its first five weeks on the U.S. market; reports cited treatment of more than 5,000 patients. The quarterly loss of $1.90 per share was also narrower than the expected $2.35, though wider than a year earlier. Zacks report on Q3 sales and RASONQUE uptake
• Positive Sentiment: The European Medicines Agency’s CHMP recommended marketing authorization for daraxonrasib (RASONQUE) in the EU, adding a potential international growth opportunity. Company Q3 results and corporate update
• Positive Sentiment: Several firms raised their targets and maintained bullish ratings. RBC increased its target to $321 from $260 with an Outperform rating; TD Cowen raised its target to $270, and Guggenheim to $298, both with Buy ratings. RBC price-target report
• Negative Sentiment: Brookline Capital Markets lowered its FY2029 and FY2030 EPS forecasts to $8.49 and $17.41, respectively, from $8.94 and $18.15. It nevertheless kept its Buy rating and $318 price target.

About Revolution Medicines

Revolution Medicines, Inc is a clinical-stage biopharmaceutical company focused on developing targeted therapies for patients with RAS-mutant cancers. The company's research platform is designed to discover and develop medicines that inhibit RAS proteins, which play a central role in the growth and spread of many cancers and have historically been difficult to target.

Its investigational pipeline includes RAS(ON) inhibitors and other precision oncology candidates, including daraxonrasib (RMC-6236), a pan-RAS inhibitor being evaluated in multiple solid tumors, as well as programs directed at specific mutations such as KRAS G12C and KRAS G12D.

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