Leerink Partnrs Issues Optimistic Forecast for CSTL Earnings

Key Points

• Leerink Partners has raised its Q3 2025 earnings per share (EPS) forecast for Castle Biosciences to ($0.35), significantly better than the previous estimate of ($0.63).
• Castle Biosciences reported a $0.15 EPS for the latest quarter, surpassing analyst expectations and achieving revenue of $86.18 million, well above the consensus estimate of $71.53 million.
• Despite positive earnings projections, some analysts have adjusted their price targets for Castle Biosciences, with a current average target price of $37.00, reflecting a "Buy" rating consensus.

Castle Biosciences, Inc. (NASDAQ:CSTL - Free Report) - Leerink Partnrs upped their Q3 2025 EPS estimates for Castle Biosciences in a research note issued on Monday, August 4th. Leerink Partnrs analyst P. Souda now forecasts that the company will post earnings per share of ($0.35) for the quarter, up from their previous estimate of ($0.63). The consensus estimate for Castle Biosciences' current full-year earnings is $0.44 per share. Leerink Partnrs also issued estimates for Castle Biosciences' Q4 2025 earnings at ($0.25) EPS, FY2025 earnings at ($0.65) EPS, Q1 2026 earnings at ($0.66) EPS, Q2 2026 earnings at ($0.62) EPS, Q3 2026 earnings at ($0.47) EPS, Q4 2026 earnings at ($0.36) EPS, FY2026 earnings at ($2.10) EPS and FY2027 earnings at ($1.73) EPS.

A number of other brokerages have also weighed in on CSTL. Lake Street Capital lowered their price target on shares of Castle Biosciences from $40.00 to $35.00 and set a "buy" rating for the company in a report on Tuesday, May 6th. Scotiabank lowered their price target on shares of Castle Biosciences from $44.00 to $40.00 and set a "sector outperform" rating for the company in a report on Wednesday, May 21st. Canaccord Genuity Group lowered their price target on shares of Castle Biosciences from $42.00 to $37.00 and set a "buy" rating for the company in a report on Tuesday, May 6th. Finally, Wall Street Zen raised shares of Castle Biosciences from a "sell" rating to a "hold" rating in a report on Sunday. One research analyst has rated the stock with a hold rating and eight have assigned a buy rating to the company. Based on data from MarketBeat, Castle Biosciences has an average rating of "Moderate Buy" and a consensus target price of $37.00.

Castle Biosciences Price Performance

Shares of NASDAQ:CSTL traded down $0.33 during trading on Thursday, reaching $19.04. The stock had a trading volume of 119,488 shares, compared to its average volume of 461,831. Castle Biosciences has a 52 week low of $14.59 and a 52 week high of $35.84. The business's 50-day moving average price is $18.30 and its 200 day moving average price is $20.24. The company has a debt-to-equity ratio of 0.02, a current ratio of 6.85 and a quick ratio of 6.69. The stock has a market capitalization of $552.21 million, a PE ratio of -54.47 and a beta of 1.09.

Castle Biosciences (NASDAQ:CSTL - Get Free Report) last posted its earnings results on Monday, August 4th. The company reported $0.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.51) by $0.66. Castle Biosciences had a negative net margin of 2.73% and a positive return on equity of 2.37%. The company had revenue of $86.18 million during the quarter, compared to analysts' expectations of $71.53 million.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of CSTL. Allspring Global Investments Holdings LLC grew its stake in Castle Biosciences by 2,070.8% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 217,794 shares of the company's stock valued at $4,360,000 after buying an additional 207,761 shares during the last quarter. ProShare Advisors LLC bought a new stake in shares of Castle Biosciences during the 4th quarter worth approximately $230,000. Deutsche Bank AG lifted its holdings in shares of Castle Biosciences by 12.5% during the 4th quarter. Deutsche Bank AG now owns 67,667 shares of the company's stock worth $1,803,000 after acquiring an additional 7,495 shares during the period. D. E. Shaw & Co. Inc. bought a new position in Castle Biosciences in the 4th quarter valued at approximately $2,414,000. Finally, Man Group plc acquired a new position in Castle Biosciences in the 4th quarter valued at approximately $354,000. 92.60% of the stock is currently owned by institutional investors and hedge funds.

Castle Biosciences Company Profile

Castle Biosciences, Inc, a molecular diagnostics company, provides testing solutions for the diagnosis and treatment of dermatologic cancers, Barrett's esophagus, uveal melanoma, and mental health conditions. It offers DecisionDx-Melanoma, a risk stratification gene expression profile (GEP) test to identify the risk of metastasis for patients diagnosed with invasive cutaneous melanoma; DecisionDx-SCC, a proprietary risk stratification GEP test for patients with cutaneous squamous cell carcinoma; MyPath Melanoma, a test used for patients with difficult-to-diagnose melanocytic lesions; and TissueCypher, a spatial omics test to predict future development of high-grade dysplasia and/or esophageal cancer in patients with non-dysplastic, indefinite dysplasia, or low-grade dysplasia Barrett's esophagus.