Core Viewpoint - Twist Bioscience (TWST) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Company Performance and Outlook - The upgrade for Twist Bioscience indicates an improvement in the company's underlying business, which is expected to positively influence its stock price [4]. - For the fiscal year ending September 2025, Twist Bioscience is projected to earn -$2.21 per share, reflecting a 38.6% change from the previous year [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The upgrade to Zacks Rank 2 places Twist Bioscience in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].

Core Insights - Twist Bioscience (NASDAQ: TWST) reported strong results in the first quarter of FY25, driven by its SynBio and NGS segments [1] - The company's core businesses continue to thrive despite a challenging macroeconomic environment, although there are questions regarding its growth initiatives [1] Company Overview - Richard Durant leads Narweena, an asset manager focused on identifying market dislocations due to poor understanding of long-term business prospects [1] - Narweena aims to achieve excess risk-adjusted returns by finding businesses with secular growth opportunities in markets with barriers to entry [1] Investment Strategy - Narweena's research process emphasizes company and industry fundamentals to uncover unique insights [1] - The firm has a high risk appetite and a long-term investment horizon, targeting deeply undervalued stocks, particularly in smaller cap markets [1] Market Dynamics - An aging population with low growth and stagnating productivity is expected to create new investment opportunities, differing from past trends [1] - Many industries may face stagnation or secular decline, which could paradoxically enhance business performance due to reduced competition [1] - Conversely, some businesses may encounter rising costs and diseconomies of scale [1] Economic Trends - The economy is increasingly dominated by asset-light businesses, leading to a declining need for infrastructure investments over time [1] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia [1]

Revenue and Growth - Revenue increased by 24% to $88.7 million for the three months ended December 31, 2024, compared to $71.5 million for the same period in 2023[104] - The number of genes shipped increased by 20% to approximately 205,000 for the three months ended December 31, 2024, compared to approximately 171,000 in the same period of 2023[114] - Synthetic genes revenue grew by $6.8 million, while NGS tools revenue increased by $9.2 million, contributing to overall revenue growth[114] - The number of customers purchasing products increased to approximately 2,376 for the three months ended December 31, 2024, compared to 2,140 in the same period of 2023[113] Profitability and Loss - Gross margin improved to 48.3%, up from 40.5% in the previous year, primarily due to increased revenue and fixed costs being spread over a larger revenue base[104] - Net loss decreased to $31.6 million for the three months ended December 31, 2024, down from $43.0 million for the same period in 2023[103] - The net loss for the three months ended December 31, 2024, was $31.6 million, adjusted for non-cash items including depreciation and amortization of $6.4 million and stock-based compensation of $12.0 million[129] Expenses - Research and development expenses decreased by 8% to $21.3 million for the three months ended December 31, 2024, compared to $23.1 million in 2023[116] - Selling, general and administrative expenses rose by 6% to $56.2 million for the three months ended December 31, 2024, compared to $52.8 million in 2023[119] Cash Flow and Investments - Cash, cash equivalents, and short-term investments totaled $270.8 million as of December 31, 2024[103] - Net cash used in operating activities was $21.4 million for the three months ended December 31, 2024, compared to $23.0 million for the same period in 2023, reflecting a decrease of 7%[129][130] - Net cash used in investing activities was $1.5 million in Q4 2024, primarily due to purchases of laboratory property and equipment totaling $2.3 million[131] - In Q4 2023, net cash provided by investing activities was $4.2 million, driven by proceeds from investments totaling $5.7 million[132] - Net cash provided by financing activities was $17.9 million in Q4 2024, consisting of $15.0 million from the sale of future revenue and $3.0 million from stock option exercises[133] - In Q4 2023, net cash used in financing activities was $1.5 million, primarily due to $2.4 million in common stock repurchases[133] Other Financial Information - The company reported a net cash outflow from operating assets and liabilities of $8.2 million in Q4 2024, mainly due to an increase in accounts receivable of $4.5 million[129] - The company received an upfront payment of $15.0 million from XOMA (US) LLC for future potential milestone and royalty payments related to antibody discovery collaborations[124] - The company has no off-balance sheet arrangements[134] - Contractual obligations have not materially changed from those reported in the Annual Report on Form 10-K[135] - There were no changes to critical accounting policies and estimates during the three months ended December 31, 2024[138]

Financial Data and Key Metrics Changes - The company reported record revenue of $88.7 million, an increase of 24% year-over-year and 5% sequentially [11][23]. - Gross margin for the quarter was 48.3%, up from 40.5% in the first quarter of fiscal 2024, reflecting improved operational efficiency [11][27]. - Adjusted EBITDA loss was approximately $16.3 million, an improvement of about $11.5 million compared to the first quarter of fiscal 2024 [29]. Business Line Data and Key Metrics Changes - Revenue from SynBio increased to $34.4 million, a 28% year-over-year growth [12][24]. - NGS revenue reached $48.6 million, up 23% year-over-year [13][24]. - Biopharma Services revenue was $5.7 million, with orders totaling $5.9 million [15][24]. Market Data and Key Metrics Changes - Revenue from the Americas increased to approximately $53.7 million, a 22% year-over-year growth [26]. - EMEA revenue rose to $28.3 million, reflecting a 33% year-over-year increase [26]. - APAC revenue increased to $6.7 million, a 6% year-over-year growth [26]. Company Strategy and Development Direction - The company aims to achieve adjusted EBITDA breakeven without raising capital while investing in profitable growth opportunities [11][22]. - The focus remains on leveraging proprietary technology for DNA synthesis to maintain a competitive edge in the market [34][38]. - The company is committed to continuous process improvements and innovation to drive gross margin growth [20][36]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate market challenges and capitalize on growth opportunities, particularly in NGS and SynBio [96][98]. - The company views current market uncertainties as opportunities to gain market share, especially in the Biopharma sector [108][96]. - There is a strong emphasis on maintaining operational discipline and focusing on customer satisfaction to drive revenue growth [87][96]. Other Important Information - The company has increased its revenue guidance for fiscal 2025 to a range of $372 million to $379 million, indicating a growth of approximately 20% at the midpoint year-over-year [30]. - The company is also focusing on developing proprietary enzymes to enhance product offerings and improve gross margins [21][69]. Q&A Session Summary Question: Can you discuss the mix shift in SynBio towards Express genes? - Management noted sequential improvement in Express gene revenue and highlighted the expansion of the Express portfolio, which is driving customer engagement and revenue growth [44]. Question: What is the timeline for achieving profitability? - Management emphasized a commitment to sequential improvements in gross margin and revenue, aiming for over 50% gross margin by Q4 [48]. Question: How are tariffs affecting operations in Canada and Mexico? - Management clarified that since all products are manufactured in the USA, the company remains unaffected by tariffs, while competitors may face challenges [52]. Question: What is the impact of the Express dynamic on margins? - Management indicated that revenue growth is the primary driver of gross margin expansion, with Express products contributing positively [58]. Question: Can you elaborate on gross margin progression throughout the year? - Management expects sequential improvements in gross margin, with initiatives in place to enhance operational efficiency [62]. Question: How is the company addressing geopolitical uncertainties in guidance? - Management expressed confidence in their diverse customer base and product offerings, viewing uncertainties as opportunities to capture market share [108].

Group 1 - Twist Bioscience reported a quarterly loss of $0.53 per share, better than the Zacks Consensus Estimate of a loss of $0.62, and an improvement from a loss of $0.75 per share a year ago, resulting in an earnings surprise of 14.52% [1] - The company achieved revenues of $88.71 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 2.04%, and showing growth from year-ago revenues of $71.5 million [2] - Over the last four quarters, Twist Bioscience has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2 - The stock has gained approximately 12.7% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is -$0.60 on revenues of $92.12 million, and for the current fiscal year, it is -$2.27 on revenues of $372.96 million [7] Group 3 - The Medical - Biomedical and Genetics industry, to which Twist Bioscience belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for Twist Bioscience is currently mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

Fiscal 2025 1Q Financial Results F E B R U A R Y 2 0 2 5 Agenda Welcome 2 | TWIST BIOSCIENCE | PROPRIETARY Business Highlights Patrick Finn President and Chief Operating Officer Financial and Operational Performance Adam Laponis Chief Financial Officer Milestones Emily Leproust Chief Executive Officer Q&A Session Angela Bitting SVP, Corporate Affairs; Chief Corporate Responsibility Officer Quarterly Highlights Emily Leproust Chief Executive Officer Legal Disclaimers This presentation contains forward-lookin ...

— Expect revenue in the range of $372 million to $379 million for full year fiscal 2025; expect gross margin over 50% for 4QFY25 — SOUTH SAN FRANCISCO, Calif. -- (February 3, 2025) — Twist Bioscience Corporation (NASDAQ: TWST), a core mid-cap growth and value equity company in the life sciences segment of the health care sector, today reported financial results and business highlights for the first quarter of fiscal 2025 ended December 31, 2024. "We ended the first quarter of fiscal 2025 with our eighth con ...

Investors might want to bet on Twist Bioscience (TWST) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individ ...

Twist Bioscience (TWST) shares soared 9.9% in the last trading session to close at $47.94. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.7% gain over the past four weeks.Last month, the company announced robust financial results for the fiscal fourth quarter and full-year fiscal 2024. This might have driven the share price rally.This maker of synthetic DNA for the biotechnology industry is expected to post quarterly loss of $ ...

Core Viewpoint - Twist Bioscience (TWST) has shown a downtrend recently, losing 9.9% over the past week, but a hammer chart pattern suggests a potential trend reversal due to increased buying interest and optimism among analysts regarding future earnings [1] Group 1: Technical Analysis - The formation of a hammer chart pattern indicates a possible bottoming out, suggesting that selling pressure may be exhausting [1] - A hammer pattern typically forms during a downtrend when the stock opens lower, makes a new low, but then closes near or above the opening price, signaling a potential loss of control by bears [2] - Hammer candles can appear on various timeframes and should be used alongside other bullish indicators for confirmation [2] Group 2: Fundamental Analysis - Recent upward revisions in earnings estimates for TWST serve as a bullish indicator, with the consensus EPS estimate increasing by 11.2% over the last 30 days [3] - Analysts covering TWST are largely in agreement about the company's potential for better earnings than previously predicted, indicating strong market sentiment [3] - TWST holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperform the market [3]