What's Next: Rhythm Pharmaceuticals's Earnings Preview

Rhythm Pharmaceuticals RYTM will release its quarterly earnings report on Tuesday, 2024-11-05. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Rhythm Pharmaceuticals to report an earnings per share (EPS) of $-0.81.

The announcement from Rhythm Pharmaceuticals is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Past Earnings Performance

The company's EPS beat by $0.16 in the last quarter, leading to a 1.09% drop in the share price on the following day.

Here's a look at Rhythm Pharmaceuticals's past performance and the resulting price change:

Stock Performance

Shares of Rhythm Pharmaceuticals were trading at $49.01 as of November 01. Over the last 52-week period, shares are up 94.77%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Take on Rhythm Pharmaceuticals

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Rhythm Pharmaceuticals.

With 8 analyst ratings, Rhythm Pharmaceuticals has a consensus rating of Buy. The average one-year price target is $61.0, indicating a potential 24.46% upside.

Peer Ratings Comparison

The below comparison of the analyst ratings and average 1-year price targets of Iovance Biotherapeutics, Amicus Therapeutics and Apellis Pharmaceuticals, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• The prevailing sentiment among analysts is an Buy trajectory for Iovance Biotherapeutics, with an average 1-year price target of $24.5, implying a potential 50.01% downside.
• Amicus Therapeutics is maintaining an Outperform status according to analysts, with an average 1-year price target of $17.4, indicating a potential 64.5% downside.
• The prevailing sentiment among analysts is an Neutral trajectory for Apellis Pharmaceuticals, with an average 1-year price target of $61.21, implying a potential 24.89% upside.

Overview of Peer Analysis

In the peer analysis summary, key metrics for Iovance Biotherapeutics, Amicus Therapeutics and Apellis Pharmaceuticals are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Rhythm Pharmaceuticals ranks at the bottom for Revenue Growth and Gross Profit among its peers. It is also at the bottom for Return on Equity.

All You Need to Know About Rhythm Pharmaceuticals

Rhythm Pharmaceuticals Inc is a biopharmaceutical company. It is engaged in development and commercialization of therapies for patients with rare diseases. It is focused on the development and commercialization of peptide therapeutics for the treatment of gastrointestinal, or GI, diseases, and genetic deficiencies that result in metabolic disorders. The company's product candidate is setmelanotide (RM 493), which is a potent, melanocortin 4, or MC4, receptor agonist for the treatment of rare genetic disorders of obesity caused by MC4 pathway deficiencies. Geographically the company generates its revenue from the United states, Germany, and other with the majority being generated from the United states.

Key Indicators: Rhythm Pharmaceuticals's Financial Health

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Rhythm Pharmaceuticals's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 51.28%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -115.42%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -66.51%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Rhythm Pharmaceuticals's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -10.48%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Rhythm Pharmaceuticals's debt-to-equity ratio is below the industry average. With a ratio of 0.1, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Rhythm Pharmaceuticals visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.