Cardiff Oncology shares plunge after Q2 earnings miss
On Tuesday, Clear Street analysts adjusted their outlook on Y-mAbs Therapeutics (NASDAQ:YMAB), reducing the price target from $21.00 to $18.00 while still maintaining a Buy rating on the stock. According to InvestingPro data, the stock appears undervalued despite falling 70% over the past year. The revision follows the company’s announcement of its fourth-quarter and full-year 2024 results, as well as its guidance for 2025, which was released earlier today.
Y-mAbs Therapeutics shares experienced a decline this morning, dropping by 12% as the broader biotech index, represented by XBI, dipped by 1%. The company’s fourth-quarter revenues showed a year-over-year increase of 13%, totaling $26.5 million, aligning with analysts’ expectations. With impressive gross margins of 89% and a strong current ratio of 3.92, InvestingPro data reveals the company maintains solid financial fundamentals. However, the forecasted revenue guidance for 2025, ranging between $75-90 million, fell short of the consensus estimate of $104 million, contributing to the stock’s downturn.
The management of Y-mAbs cited competitive pressures from ongoing trials as a challenge to near-term growth but expects this to be a temporary setback. They remain optimistic about the future, especially following a recent reorganization aimed at boosting the commercial performance of their flagship product, Danyelza.
Despite the cautious revenue outlook, Clear Street continues to endorse a Buy rating for Y-mAbs. The analysts believe in the potential profitability of Danyelza and anticipate additional upside from the company’s SADA platform. Clarity on this matter is expected to emerge in the second quarter when new targets are announced. InvestingPro analysis shows analyst targets ranging from $11 to $26, with the company maintaining a GOOD financial health score. The revised peak sales estimate now stands at $153 million by 2034, a decrease from the previous forecast of $197 million, leading to the lowered price target. Discover 8 additional exclusive InvestingPro Tips and comprehensive analysis in our Pro Research Report.
In other recent news, YmAbs Therapeutics reported its financial results for the fourth quarter of 2024, which did not meet earnings and revenue expectations. The company announced an earnings per share (EPS) of -0.15, missing the forecast of -0.1165, and revenue of $24.5 million, which was below the anticipated $26.99 million. Despite these financial setbacks, YmAbs’ flagship product, Danyelza, maintained a stable market share in the U.S. anti-GD2 market, with international revenue showing strong growth, particularly in Western Asia, Latin America, and China. The company also provided a revenue guidance for 2025, expecting between $75 million and $90 million, with first-quarter revenue projected to be between $18 million and $21 million.
Additionally, YmAbs has been focusing on its SADA platform trials, which have shown promising results. Management remains confident in its cash runway through 2027, despite the current financial challenges. The company’s strategic decision to establish two distinct business units, Danyelza and Radiopharmaceuticals, is aimed at accelerating the development of its novel SADA platform and maximizing the potential of Danyelza. Analyst firms, including Bank of America, have been actively engaging with YmAbs on the company’s guidance and future plans, reflecting the ongoing interest and scrutiny from the investment community.
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