Sutro Biopharma, Inc. (STRO) Reports Q2 Loss, Beats Revenue Estimates

Core Insights - Sutro Biopharma, Inc. reported a quarterly loss of $0.14 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.39, and an improvement from a loss of $0.59 per share a year ago, resulting in an earnings surprise of +64.10% [1] - The company achieved revenues of $63.75 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 293.54%, compared to $25.71 million in the same quarter last year [2] - Sutro Biopharma's stock has declined approximately 55.6% year-to-date, contrasting with the S&P 500's gain of 7.9% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is -$0.24 on revenues of $14.66 million, and for the current fiscal year, it is -$1.79 on revenues of $62.76 million [7] Industry Context - Sutro Biopharma operates within the Medical - Biomedical and Genetics industry, which is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable industry outlook [8] - The performance of Sutro Biopharma's stock may be influenced by the overall industry trends, as historically, the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] Estimate Revisions - The trend of estimate revisions for Sutro Biopharma was mixed prior to the earnings release, 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] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]