Why Is Schrödinger Stock Tumbling Today?

Comments
Loading...

Schrödinger Inc SDGR shares are down after the company, on Wednesday, released Q2 financial results.

It reported Q2 adjusted EPS loss of $(0.79), higher than $(0.62) a year ago and missing the consensus of $(0.41).

Sales decreased 8.5% to $35.19 million, beating the consensus of $33.01 million.

Drug discovery revenue was $5.8 million compared to $8.5 million a year ago. Software revenue was $29.4 million, within the management guidance of $27 million-$31 million.

Schrödinger also announced that, for strategic reasons, Zai Lab Limited ZLAB has elected not to advance their discovery collaboration with Schrödinger to the next stage of development. 

In the two years of the collaboration, the joint team made substantial progress toward the technical goals for this complex target. The program is now wholly owned by Schrödinger.

In August 2021, the companies announced a global discovery, development, and commercialization collaboration focused on a novel program in oncology targeting DNA damage response.

Guidance: Schrödinger says 2023 drug discovery revenue is now expected to be $50 million-$70 million, compared to the prior expectation of $70 million-$90 million, reflecting the company’s new expectations for the timing of collaboration milestones and the completion of new business development activity.

Software revenue growth is expected to be 15%-18% compared to the previous range of 13%-17%. For Q3, software revenue is expected to be $27 million-$31 million.

Price Action: SDGR shares are down 22.40% at $38.96 on the last check Thursday.

Market News and Data brought to you by Benzinga APIs
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise

Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!