Why Revolution Medicines Shares Are Trading Higher Today

Revolution Medicines, Inc. RMVD shares are trading higher after the company reported better-than-expected fourth-quarter results.

What Happened: On Monday after market closure, Revolution Medicines reported its fourth-quarter and full-year results for the period ending Dec. 31, 2022. The company also provided earnings guidance for the full-year 2023.

The Details: Revolution Medicines reported quarterly earnings (losses) of $(0.63) per share compared to the analyst consensus estimate of $(0.82) per share, representing a positive earnings surprise of 23.2%. The company reported quarterly sales of $15.33 million compared to previous analyst estimates of $7.75 million, representing a positive sales surprise of 97.8%.

The company also reported yearly earnings (losses) of $(3.08) per share compared to $(2.57) per share in 2021. Revolution Medicines announced yearly revenues of $35.4 million, compared to $29.4 million in 2021.

Revolution Medicines provided guidance for 2023, expecting a net loss in the range of $335-$365 million, which includes a non-cash stock-based compensation between $40-$50 million.

Mark A. Goldsmith, M.D., Ph.D., chief executive officer and chairman of Revolution Medicines, noted "as a result of the exceptional work of our entire organization, Revolution Medicines' portfolio now includes clinical and development-stage assets that may be applicable to the majority of RAS-addicted cancers.”

Revolution Medicines is a clinical-stage oncology company developing novel targeted therapies for RAS-addicted cancers.

According to data from Benzinga Pro, Revolution Medicines shares were up 12.9%, trading at $27.51 at the time of publication. The stock has a 52-week high of $31.37 and a 52-week low of $14.08.