HC Wainwright Issues Negative Outlook for Zymeworks Earnings

Key Points

• HC Wainwright lowered its FY2026 EPS forecast for Zymeworks to $0.31 from $0.36, while maintaining a Buy rating and a $51 price target. Its estimates also project losses through all four quarters of 2027.
• Zymeworks recently reported a quarterly EPS loss of $0.62, missing the $0.56 consensus estimate, while revenue of $4.59 million narrowly exceeded expectations but fell 90.6% year over year.
• Despite mixed earnings results, analysts overall rate the stock “Moderate Buy,” with an average price target of $40.75. Shares opened at $24.16, and the company has authorized a $125 million buyback covering up to 7% of outstanding shares.

Zymeworks Inc. (NASDAQ:ZYME - Free Report) - HC Wainwright cut their FY2026 earnings per share estimates for shares of Zymeworks in a report issued on Monday, August 10th. HC Wainwright analyst R. Burns now anticipates that the company will post earnings per share of $0.31 for the year, down from their previous forecast of $0.36. HC Wainwright has a "Buy" rating and a $51.00 price objective on the stock. The consensus estimate for Zymeworks' current full-year earnings is $1.25 per share. HC Wainwright also issued estimates for Zymeworks' Q1 2027 earnings at ($0.45) EPS, Q2 2027 earnings at ($0.44) EPS, Q3 2027 earnings at ($0.42) EPS and Q4 2027 earnings at ($0.42) EPS.

Several other equities analysts have also weighed in on the company. Stifel Nicolaus set a $46.00 price target on Zymeworks in a research note on Friday. Truist Financial upped their price target on Zymeworks from $31.00 to $32.00 and gave the company a "buy" rating in a research report on Friday. Weiss Ratings reiterated a "sell (d-)" rating on shares of Zymeworks in a research report on Friday, July 17th. Citigroup reissued a "buy" rating on shares of Zymeworks in a research note on Monday. Finally, B. Riley Financial restated a "buy" rating and issued a $44.00 target price (up from $40.00) on shares of Zymeworks in a report on Monday. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Zymeworks presently has an average rating of "Moderate Buy" and an average price target of $40.75.

Zymeworks Stock Up 2.6%

Shares of NASDAQ ZYME opened at $24.16 on Tuesday. The business's 50 day moving average price is $23.98 and its 200 day moving average price is $24.46. The firm has a market cap of $1.71 billion, a P/E ratio of -11.96 and a beta of 1.15. Zymeworks has a 52 week low of $11.86 and a 52 week high of $29.75.

Zymeworks (NASDAQ:ZYME - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported ($0.62) EPS for the quarter, missing analysts' consensus estimates of ($0.56) by ($0.06). The business had revenue of $4.59 million during the quarter, compared to the consensus estimate of $4.54 million. Zymeworks had a negative return on equity of 72.30% and a negative net margin of 405.31%.The business's quarterly revenue was down 90.6% on a year-over-year basis. During the same period last year, the firm earned $0.03 EPS.

Institutional Trading of Zymeworks

Several institutional investors have recently added to or reduced their stakes in the stock. Caitong International Asset Management Co. Ltd purchased a new stake in Zymeworks during the fourth quarter worth about $37,000. Quarry LP purchased a new stake in Zymeworks in the third quarter valued at $50,000. Tower Research Capital LLC TRC boosted its position in shares of Zymeworks by 29.6% in the 2nd quarter. Tower Research Capital LLC TRC now owns 4,947 shares of the company's stock valued at $62,000 after purchasing an additional 1,131 shares during the period. State of Wyoming acquired a new stake in shares of Zymeworks in the second quarter valued at approximately $73,000. Finally, Mirae Asset Global Investments Co. Ltd. grew its position in Zymeworks by 25.2% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 3,637 shares of the company's stock worth $96,000 after purchasing an additional 731 shares during the last quarter. Institutional investors and hedge funds own 92.89% of the company's stock.

Zymeworks announced that its board has approved a stock buyback plan on Thursday, May 14th that authorizes the company to buyback $125.00 million in shares. This buyback authorization authorizes the company to purchase up to 7% of its shares through open market purchases. Shares buyback plans are often an indication that the company's leadership believes its shares are undervalued.

About Zymeworks

Zymeworks Inc is a clinical-stage biopharmaceutical company dedicated to the discovery, development and commercialization of next-generation multifunctional biotherapeutics. The company specializes in engineered antibody and protein therapeutics designed to address a range of unmet medical needs in oncology and other serious diseases. Through its proprietary platforms, Zymeworks aims to create novel bispecific and multispecific molecules that can simultaneously engage multiple targets and recruit immune effector functions to enhance potency and specificity.

At the core of Zymeworks' innovation is its Azymetric™ bispecific antibody platform, which enables the design of asymmetrical bispecific antibodies with controlled assembly and high stability.

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