Earnings Preview: Castle Biosciences, Inc. (CSTL) Q2 Earnings Expected to Decline

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Castle Biosciences, Inc. due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected on August 4, with a consensus estimate of a quarterly loss of $0.51 per share, reflecting a year-over-year change of -264.5% [3]. - Revenues are projected to be $73.89 million, down 15.1% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 26% lower in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a strong predictor for positive readings [9][10]. - Castle Biosciences currently holds a Zacks Rank of 4, making it challenging to predict an earnings beat [12][13]. Historical Performance - In the last reported quarter, Castle Biosciences was expected to post a loss of $0.08 per share but actually reported a loss of -$0.20, resulting in a surprise of -150.00% [14]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [15]. Industry Comparison - Moderna, another player in the Zacks Medical - Biomedical and Genetics industry, is expected to report a loss of $2.99 per share, with revenues projected at $127.17 million, down 47.2% year-over-year [19][20]. - Moderna's consensus EPS estimate has been revised 1.4% lower, but it has a positive Earnings ESP of +7.22% and a Zacks Rank of 3, indicating a likelihood of beating the consensus estimate [20][21].