Preview: Danimer Scientific's Earnings

Danimer Scientific DNMR is gearing up to announce its quarterly earnings on Tuesday, 2024-11-19. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Danimer Scientific will report an earnings per share (EPS) of $-0.20.

Investors in Danimer Scientific are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Overview of Past Earnings

Last quarter the company beat EPS by $0.04, which was followed by a 11.95% drop in the share price the next day.

Here's a look at Danimer Scientific's past performance and the resulting price change:

Danimer Scientific Share Price Analysis

Shares of Danimer Scientific were trading at $8.64 as of November 15. Over the last 52-week period, shares are down 83.79%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analyst Opinions on Danimer Scientific

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Danimer Scientific.

With 1 analyst ratings, Danimer Scientific has a consensus rating of Neutral. The average one-year price target is $1.0, indicating a potential 88.43% downside.

Comparing Ratings Among Industry Peers

The analysis below examines the analyst ratings and average 1-year price targets of Flotek Industries, Ginkgo Bioworks Holdings and Rayonier Adv Materials, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Flotek Industries received a Buy consensus from analysts, with an average 1-year price target of $8.0, implying a potential 7.41% downside.
• Ginkgo Bioworks Holdings is maintaining an Buy status according to analysts, with an average 1-year price target of $8.5, indicating a potential 1.62% downside.
• The consensus among analysts is an Outperform trajectory for Rayonier Adv Materials, with an average 1-year price target of $11.0, indicating a potential 27.31% upside.

Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Flotek Industries, Ginkgo Bioworks Holdings and Rayonier Adv Materials, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

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

Unveiling the Story Behind Danimer Scientific

Danimer Scientific Inc creates more sustainable, more natural ways to make plastic products sold under the proprietary Nodax brand name. The company's renewable and sustainable biopolymers have helped create plastic products that are biodegradable and compostable. Danimer Scientific's products return to nature instead of polluting lands and waters. Its technology can be found in a vast array of plastic end-use products that people use every day. Applications for its biopolymers include additives, aqueous coatings, fibers, filaments, films, and injection-molded articles, among others. Geographically, the company generates a majority of its revenue from the United States and the rest from Germany, Poland, Belgium, and other regions.

Breaking Down Danimer Scientific's Financial Performance

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Challenges: Danimer Scientific's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -40.71%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Materials sector.

Net Margin: Danimer Scientific's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -297.08%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Danimer Scientific's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -9.25%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Danimer Scientific's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -3.34%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Danimer Scientific's debt-to-equity ratio surpasses industry norms, standing at 1.79. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

To track all earnings releases for Danimer Scientific visit their earnings calendar on our site.

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