Spero Therapeutics (NASDAQ:SPRO) Posts Earnings Results, Beats Estimates By $0.73 EPS

Key Points

• Spero beat estimates: QEPS was $0.53 versus a consensus of ($0.20) (a $0.73 beat) and revenue was $41.3M versus $26M expected.
• Despite the beat, the company remains unprofitable with a negative ROE (-125.91%) and net margin (-108.11%), and the stock traded down 1.7% to $2.37 (market cap ~$133.5M).
• Investor actions are mixed: insider Esther Rajavelu sold shares (reducing her stake ~7.99%) while institutions like GSK established a new ~$21.4M position, and analyst coverage averages a "Reduce" rating.

Spero Therapeutics (NASDAQ:SPRO - Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.53 EPS for the quarter, topping the consensus estimate of ($0.20) by $0.73, FiscalAI reports. The firm had revenue of $41.30 million during the quarter, compared to analyst estimates of $26.00 million. Spero Therapeutics had a negative return on equity of 125.91% and a negative net margin of 108.11%.

Spero Therapeutics Stock Down 1.7%

Shares of Spero Therapeutics stock traded down $0.04 during trading on Thursday, reaching $2.37. The company's stock had a trading volume of 423,449 shares, compared to its average volume of 304,225. Spero Therapeutics has a 1-year low of $0.51 and a 1-year high of $3.22. The company has a 50-day simple moving average of $2.36 and a two-hundred day simple moving average of $2.30. The company has a market cap of $133.53 million, a price-to-earnings ratio of -3.00 and a beta of 1.45.

Insider Buying and Selling

In other Spero Therapeutics news, insider Esther Rajavelu sold 87,917 shares of the stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $2.36, for a total value of $207,484.12. Following the completion of the sale, the insider directly owned 1,012,091 shares in the company, valued at approximately $2,388,534.76. This trade represents a 7.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 5.50% of the company's stock.

Hedge Funds Weigh In On Spero Therapeutics

Several hedge funds have recently modified their holdings of SPRO. GSK plc acquired a new position in Spero Therapeutics in the 4th quarter worth approximately $21,414,000. Vanguard Group Inc. lifted its stake in Spero Therapeutics by 2.0% during the 3rd quarter. Vanguard Group Inc. now owns 1,989,855 shares of the company's stock valued at $3,741,000 after acquiring an additional 39,474 shares during the period. State Street Corp boosted its holdings in shares of Spero Therapeutics by 10.1% in the 4th quarter. State Street Corp now owns 210,151 shares of the company's stock valued at $490,000 after acquiring an additional 19,200 shares during the last quarter. Arrowstreet Capital Limited Partnership purchased a new stake in shares of Spero Therapeutics in the 3rd quarter valued at $283,000. Finally, OMERS ADMINISTRATION Corp acquired a new stake in shares of Spero Therapeutics in the fourth quarter worth $306,000. Institutional investors and hedge funds own 25.60% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on SPRO shares. Wall Street Zen lowered Spero Therapeutics from a "buy" rating to a "hold" rating in a research note on Saturday, March 21st. Weiss Ratings restated a "sell (d-)" rating on shares of Spero Therapeutics in a report on Thursday, January 22nd. One research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Reduce".

Spero Therapeutics Company Profile

Spero Therapeutics is a clinical‐stage biopharmaceutical company focused on the discovery and development of novel therapies to address multidrug‐resistant bacterial infections. Headquartered in Boston, Massachusetts, the company aims to advance a pipeline of oral and intravenous antibiotic candidates designed to treat serious infectious diseases that pose significant public health challenges.

The company's lead candidate, tebipenem HBr, is an oral carbapenem antibiotic being developed for the treatment of complicated urinary tract infections caused by resistant Gram‐negative pathogens.

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