Caesars Entertainment misses Q2 earnings expectations, shares edge lower
On Tuesday, Twist Bioscience (NASDAQ:TWST) shares saw an uptick as Scotiabank (TSX:BNS) analyst Sung Ji Nam raised the company’s price target to $62 from $54, maintaining a Sector Outperform rating. The stock, currently trading at $52.75, has demonstrated strong momentum with a 44% return over the past year according to InvestingPro data. The adjustment followed Twist Bioscience’s financial results for the first quarter of fiscal year 2025, which surpassed consensus predictions and previously issued company guidance, with two analysts recently revising their earnings estimates upward.
Twist Bioscience reported gross margins for the quarter that exceeded the full year’s prior gross margin guidance. The company’s full-year fiscal 2025 guidance was also revised upward, with expectations for total revenue growth of 19-21% year-over-year, compared to the prior forecast of 17-20%. This follows an impressive 25.85% revenue growth in the last twelve months. Gross margins are projected to be around 49% for the full year and above 50% for the fourth quarter of fiscal year 2025, an increase from the previous estimates of approximately 48% and 50%, respectively. Additionally, the company anticipates an improved adjusted EBITDA loss of about $36 million, an improvement from the prior expectation of around $31 million.
The strong performance is attributed to continued momentum in both the SynBio segment, driven by the Express portfolio, and the NGS segment, bolstered by liquid biopsy and rare disease applications. These segments are still in the initial phases of market penetration. With a focus on profitability, Twist Bioscience is expected to be well-capitalized to reach adjusted EBITDA profitability within the next 24 months, including continued disciplined investments in Biopharma and DNA Data Storage.
Exiting the first quarter of fiscal year 2025, Twist Bioscience had approximately $271 million in cash, a slight decrease from $276 million at the end of the fourth quarter of fiscal year 2024. The company maintains a strong liquidity position with a current ratio of 4.96, indicating robust ability to meet short-term obligations. Based on these outcomes and projections, Scotiabank has increased its revenue estimates for fiscal years 2025 and 2026, alongside the revised price target, reiterating the Sector Outperform rating for the company’s stock. For deeper insights into Twist Bioscience’s financial health and detailed analysis, investors can access comprehensive research reports and additional ProTips through InvestingPro.
In other recent news, Twist Bioscience has been making significant strides in its financial performance. Barclays (LON:BARC) analyst Luke Sergott raised the price target on Twist Bioscience shares to $58.00, underpinned by the company’s impressive 27.7% revenue growth over the last twelve months. The company concluded its fiscal year 2024 with a robust performance, demonstrating a 27% increase in Q4 revenues to $84.7 million, and a total annual revenue growth of 28% reaching $330 million. Analysts from Baird, TD Cowen, and Scotiabank reaffirmed their positive stance on the company, with Baird maintaining an Outperform rating and a $48.00 price target, TD Cowen holding a Buy rating and a $58.00 price target, and Scotiabank raising its price target to $54 and maintaining a Sector Outperform rating. The company’s initial guidance for FY25 anticipates revenue growth between 17% to 20% year-over-year, largely driven by the Next (LON:NXT) Generation Sequencing (NGS) and Synthetic Biology (SynBio) sectors. Twist Bioscience is also expected to improve its adjusted EBITDA by roughly $30 million year-over-year. These are among the recent developments shaping the future of Twist Bioscience.
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