Prothena (PRTA) Reports Q3 Loss, Lags Revenue Estimates

Core Insights - Prothena reported a quarterly loss of $0.67 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.60, but an improvement from a loss of $1.10 per share a year ago, indicating an earnings surprise of -11.67% [1] - The company generated revenues of $2.42 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 90.26%, compared to revenues of $0.97 million in the same quarter last year [2] - Prothena's shares have declined approximately 25.9% year-to-date, contrasting with the S&P 500's gain of 15.6% [3] Future Outlook - The future performance of Prothena's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is -$0.42 on revenues of $36.25 million, and for the current fiscal year, it is -$4.45 on revenues of $38.26 million [7] - The Zacks Industry Rank places the Medical - Biomedical and Genetics sector in the top 41% of over 250 Zacks industries, suggesting a favorable industry outlook [8] Estimate Revisions - Prior to the earnings release, the estimate revisions trend for Prothena was favorable, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expectations of outperforming 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]