NovoCure's Earnings: A Preview
NovoCure (NASDAQ:NVCR) is gearing up to announce its quarterly earnings on Thursday, 2025-04-24. Here's a quick overview of what investors should know before the release.
Analysts are estimating that NovoCure will report an earnings per share (EPS) of $-0.49.
The market awaits NovoCure's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Earnings Track Record
In the previous earnings release, the company missed EPS by $0.27, leading to a 0.83% drop in the share price the following trading session.
Here's a look at NovoCure's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | -0.34 | -0.33 | -0.41 | -0.42 |
| EPS Actual | -0.61 | -0.28 | -0.31 | -0.36 |
| Price Change % | -1.0% | -11.0% | 2.0% | 4.0% |
Stock Performance
Shares of NovoCure were trading at $16.51 as of April 22. Over the last 52-week period, shares are up 42.85%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analyst Opinions on NovoCure
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding NovoCure.
The consensus rating for NovoCure is Neutral, derived from 3 analyst ratings. An average one-year price target of $29.67 implies a potential 79.71% upside.
Comparing Ratings Among Industry Peers
In this analysis, we delve into the analyst ratings and average 1-year price targets of LeMaitre Vascular, Enovis and QuidelOrtho, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for LeMaitre Vascular, with an average 1-year price target of $105.0, suggesting a potential 535.98% upside.
- Analysts currently favor an Buy trajectory for Enovis, with an average 1-year price target of $64.0, suggesting a potential 287.64% upside.
- Analysts currently favor an Neutral trajectory for QuidelOrtho, with an average 1-year price target of $43.67, suggesting a potential 164.51% upside.
Insights: Peer Analysis
Within the peer analysis summary, vital metrics for LeMaitre Vascular, Enovis and QuidelOrtho are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| NovoCure | Neutral | 20.54% | $127.80M | -18.29% |
| LeMaitre Vascular | Buy | 13.98% | $38.59M | 3.35% |
| Enovis | Buy | 23.29% | $307.52M | -23.87% |
| QuidelOrtho | Neutral | -4.69% | $326.10M | -5.78% |
Key Takeaway:
NovoCure ranks at the top for Revenue Growth and Gross Profit among its peers. However, it ranks at the bottom for Return on Equity. Overall, NovoCure's performance is strong in terms of revenue and profit growth, but it lags behind in generating returns for its equity holders.
About NovoCure
NovoCure Ltd is an oncology company with a propreitary platform technology in United States. Its business involves the development, manufacture and commercialization of Tumor Treating Fields (TTFields) devices, including Optune Gio and Optune Lua, for the treatment of solid tumor cancers. Its pipeline consists of Trident, Lunar-2, Panova-3, Metis and other products and technologies for the treatment of Glioblastoma, Non-smell cell lung cancer and Pancreatic cancer. Geographically, the company derives majority of its revenue from the United States and rest from Germany, Japan and other markets.
NovoCure's Economic Impact: An Analysis
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Revenue Growth: NovoCure's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 20.54%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Health Care sector.
Net Margin: NovoCure's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -40.88%, the company may face hurdles in effective cost management.
Return on Equity (ROE): NovoCure's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -18.29%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -5.35%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: With a high debt-to-equity ratio of 1.9, NovoCure faces challenges in effectively managing its debt levels, indicating potential financial strain.
To track all earnings releases for NovoCure visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.