Kronos Bio, Inc. (KRON) Reports Q3 Loss, Tops Revenue Estimates

Company Performance - Kronos Bio, Inc. reported a quarterly loss of $0.23 per share, better than the Zacks Consensus Estimate of a loss of $0.26, and an improvement from a loss of $0.54 per share a year ago, representing an earnings surprise of 11.54% [1] - The company posted revenues of $2.37 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 35.43%, compared to revenues of $0.92 million in the same quarter last year [2] - Over the last four quarters, Kronos Bio has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Outlook - Kronos Bio shares have declined approximately 26.4% since the beginning of the year, contrasting with the S&P 500's gain of 25.5% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.26 on revenues of $1.75 million, and for the current fiscal year, it is -$1.33 on revenues of $8.72 million [7] - The estimate revisions trend for Kronos Bio is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Medical - Biomedical and Genetics industry, to which Kronos Bio belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]