Rhythm Pharmaceuticals, Inc. (RYTM) Reports Q4 Loss, Tops Revenue Estimates

Company Performance - Rhythm Pharmaceuticals reported a quarterly loss of $0.72 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.69, and compared to a loss of $0.70 per share a year ago, indicating an earnings surprise of -4.35% [1] - The company posted revenues of $41.83 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.19%, and showing a significant increase from year-ago revenues of $24.23 million [2] - Over the last four quarters, Rhythm Pharmaceuticals has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Outlook - The stock has underperformed the market, losing about 8.8% since the beginning of the year, while the S&P 500 has gained 1.3% [3] - The current consensus EPS estimate for the coming quarter is -$0.71 on revenues of $39.32 million, and for the current fiscal year, it is -$2.52 on revenues of $183.18 million [7] Industry Context - The Medical - Biomedical and Genetics industry, to which Rhythm Pharmaceuticals belongs, is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry performance can materially impact stock performance [5][8]