OraSure Technologies Reports Smaller Loss, But Revenue Declines Raise Concerns

Quarterly Loss Better Than Expected

OraSure Technologies (OSUR) reported a quarterly loss of $0.01 per share, beating the Zacks Consensus Estimate, which was a loss of $0.04. This is a stark contrast to last year’s earnings of $0.27 per share. The figures are adjusted for non-recurring items.

This quarterly result marks an earnings surprise of 75%. In the previous quarter, analysts expected OraSure to post earnings of $0.03 per share, but the company exceeded expectations with earnings of $0.07, resulting in a surprise of 133.33%.

Revenue Drops Despite Surpassing Estimates

In the quarter ending September 2024, OraSure, a player in the Zacks Medical – Products industry, generated revenues of $39.92 million. This official figure surpassed the Zacks Consensus Estimate by 1.97%. However, it represents a significant drop from year-ago revenues of $89.19 million. Over the past four quarters, the company has beaten consensus revenue estimates in each instance.

The immediate movement of OraSure’s stock price will largely depend on the insights shared by management during the earnings call regarding future expectations.

Since the start of the year, OraSure shares have decreased by approximately 47.7%, while the S&P 500 has seen a gain of 21.2%.

Investor Outlook Uncertain

Investors are left wondering about the future for OraSure. A reliable measure of direction is the company’s earnings outlook, which encompasses current consensus estimates for upcoming quarters and any recent changes in those forecasts.

Research demonstrates a strong link between stock movements and earnings estimate revisions. Investors can keep track of these changes themselves or utilize tools like the Zacks Rank, which effectively leverages earnings revisions to guide decisions.

In the lead-up to the latest earnings release, revisions for OraSure’s estimates have been mixed. While the status could change following the recent results, the current Zacks Rank sits at #3 (Hold), suggesting the stock is expected to perform in line with the market going forward. The latest consensus EPS estimate is -$0.03 on revenues of $38.51 million for the next quarter and $0.05 on revenues of $186.12 million for the fiscal year.

Industry Context and Comparisons

It is also important for investors to consider how the industry’s outlook can affect stock performance. Currently, the Medical – Products industry holds a Zacks Industry Rank in the top 36% out of over 250 industry sectors. Historical data shows that the higher-performing industries—those in the top half—outperform the lower half by more than twofold.

Another company in the same sector, Capricor Therapeutics (CAPR), has not yet announced its results for the quarter ending September 2024. Expected to report on November 13, Capricor is projected to incur a quarterly loss of $0.34 per share, reflecting a year-over-year decrease of 36%. Recent estimates suggest revenues of $4.04 million, which would be a decline of 34.8% compared to the same quarter last year.

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OraSure Technologies, Inc. (OSUR): Free Stock Analysis Report

Capricor Therapeutics, Inc. (CAPR): Free Stock Analysis Report

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.