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Schrodinger, Inc. (SDGR) Reports Q2 Loss, Tops Revenue Estimates
SDGRSchrodinger(SDGR) ZACKS·2024-07-31 23:40

Company Performance - Schrodinger, Inc. reported a quarterly loss of 0.74pershare,whichwasbetterthantheZacksConsensusEstimateofalossof0.74 per share, which was better than the Zacks Consensus Estimate of a loss of 0.85, and compared to a loss of 0.21pershareayearago,indicatinganearningssurpriseof12.940.21 per share a year ago, indicating an earnings surprise of 12.94% [1] - The company posted revenues of 47.33 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 17.78%, and this represents an increase from year-ago revenues of 35.19million[2]−Overthelastfourquarters,SchrodingerhassurpassedconsensusEPSestimatestwotimesandtoppedconsensusrevenueestimatestwotimes[2]FutureOutlook−ThesustainabilityofSchrodinger′sstockpricemovementwilldependonmanagement′scommentaryduringtheearningscallandthecompany′searningsoutlook[3][4]−ThecurrentconsensusEPSestimatefortheupcomingquarteris−35.19 million [2] - Over the last four quarters, Schrodinger has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Future Outlook - The sustainability of Schrodinger's stock price movement will depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is -0.87 on revenues of 42.66million,andforthecurrentfiscalyear,itis−42.66 million, and for the current fiscal year, it is -2.83 on revenues of $211.58 million [7] - The estimate revisions trend for Schrodinger is mixed, resulting in a Zacks Rank 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Medical Info Systems industry, to which Schrodinger belongs, is currently in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [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]