Zymeworks (NASDAQ:ZYME) Issues Earnings Results, Misses Expectations By $0.05 EPS

Key Points

• Zymeworks reported a wider-than-expected quarterly loss: EPS was negative $0.62, missing the $0.57 consensus estimate, while revenue of $4.59 million exceeded expectations of $3.81 million. Revenue fell 90.6% year over year, and the company remained unprofitable.
• Analysts remain generally optimistic despite weak results: The stock has a “Moderate Buy” consensus rating and an average price target of $38.22, well above its recent price near $23.54. Several firms raised their targets, including HC Wainwright to $51 and Wells Fargo to $40.
• Zymeworks authorized a $125 million share repurchase program: The buyback permits the company to repurchase up to 7% of its outstanding shares, potentially signaling management’s view that the stock is undervalued.

Zymeworks (NASDAQ:ZYME - Get Free Report) posted its quarterly earnings results on Thursday. The company reported ($0.62) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.57) by ($0.05), FiscalAI reports. The business had revenue of $4.59 million during the quarter, compared to analyst estimates of $3.81 million. Zymeworks had a negative return on equity of 37.97% and a negative net margin of 126.92%.The business's revenue for the quarter was down 90.6% on a year-over-year basis. During the same period last year, the company earned $0.03 EPS.

Zymeworks Stock Performance

Zymeworks stock traded up $0.41 during trading hours on Friday, reaching $23.54. 546,560 shares of the company's stock traded hands, compared to its average volume of 672,582. Zymeworks has a fifty-two week low of $11.51 and a fifty-two week high of $29.75. The firm has a market capitalization of $1.72 billion, a price-to-earnings ratio of -17.18 and a beta of 1.15. The firm's 50 day moving average is $24.02 and its 200-day moving average is $24.46.

Institutional Investors Weigh In On Zymeworks

A number of institutional investors and hedge funds have recently modified their holdings of ZYME. Invesco Ltd. lifted its holdings in Zymeworks by 175.0% in the fourth quarter. Invesco Ltd. now owns 257,580 shares of the company's stock valued at $6,782,000 after buying an additional 163,923 shares during the period. XTX Topco Ltd bought a new stake in shares of Zymeworks during the 4th quarter valued at $2,461,000. VARCOV Co. acquired a new position in shares of Zymeworks in the 4th quarter valued at $259,000. Virtus Investment Advisers LLC lifted its stake in shares of Zymeworks by 20.2% in the 4th quarter. Virtus Investment Advisers LLC now owns 10,441 shares of the company's stock valued at $275,000 after purchasing an additional 1,755 shares during the period. Finally, SummitTX Capital L.P. bought a new position in shares of Zymeworks in the 4th quarter worth $5,905,000. 92.89% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Zymeworks in a report on Friday, July 17th. Stifel Nicolaus set a $46.00 target price on Zymeworks in a report on Friday. Wells Fargo & Company increased their target price on Zymeworks from $37.00 to $40.00 and gave the stock an "overweight" rating in a report on Friday. HC Wainwright increased their price objective on shares of Zymeworks from $46.00 to $51.00 and gave the stock a "buy" rating in a report on Wednesday. Finally, Truist Financial raised their price objective on shares of Zymeworks from $31.00 to $32.00 and gave the company a "buy" rating in a research report on Friday. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $38.22.

Trending Headlines about Zymeworks

Here are the key news stories impacting Zymeworks this week:

• Positive Sentiment: Truist raises target and maintains a Buy rating: Truist Financial lifted its price target from $31 to $32, implying substantial upside from recent trading levels. The firm’s continued Buy recommendation may support investor confidence. Benzinga article
• Positive Sentiment: Analysts remain broadly bullish: HC Wainwright reiterated its Buy rating and $51 price target, while a separate brokerage report cited an average price target of $37.33. These targets suggest analysts see meaningful long-term value in Zymeworks despite near-term losses. Average price target article
• Neutral Sentiment: Revenue exceeded expectations: Zymeworks reported quarterly revenue of $4.59 million, ahead of the $3.81 million consensus estimate. However, the company remains unprofitable, limiting the positive impact of the revenue beat. Zacks earnings article
• Negative Sentiment: Quarterly loss was wider than expected: Zymeworks posted a loss of $0.62 per share, missing estimates for a $0.56–$0.57 loss and reversing year-earlier earnings of $0.03 per share. Revenue also declined 90.6% year over year, while the company reported a negative net margin and return on equity. Zymeworks earnings release
• Negative Sentiment: HC Wainwright cut earnings forecasts: The firm reduced its FY2026 EPS estimate from $1.00 to $0.36 and lowered its Q2 and Q4 forecasts to losses of $0.58 and $0.54 per share, respectively. It also trimmed its Q3 estimate to $2.09 from $2.17, signaling weaker near-term earnings expectations.

Zymeworks announced that its Board of Directors has authorized a stock buyback program on Thursday, May 14th that permits the company to buyback $125.00 million in shares. This buyback authorization permits the company to repurchase up to 7% of its shares through open market purchases. Shares buyback programs are often a sign that the company's management believes its stock is undervalued.

Zymeworks Company Profile

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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