Twist Bioscience Corporation (TWST) In Gap Down After Q4 Earnings
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Twist Bioscience Corporation (TWST) Post Earning Analysis
Twist Bioscience Corp., founded in 2013 and headquartered in San Francisco, specializes in synthetic DNA manufacturing using a proprietary semiconductor-based process. The company operates across three main geographical segments: Americas, EMEA (Europe, Middle East, and Africa), and APAC (Asia-Pacific), serving a diverse global market that includes the United States, Canada, Europe, Japan, China, and more.
Twist Bioscience (TWST) recently reported their fiscal Q4 earnings, highlighting a loss but surpassing revenue expectations. Despite the loss, the company’s ability to exceed revenue forecasts could suggest a positive outlook on its operational efficiency and market demand for its products. This news, covered by sources like Zacks and Associated Press Finance, could potentially impact Twist Bioscience’s stock in a positive manner, as exceeding revenue estimates often reflects favorably in investor sentiment.
In contrast, other biotech firms such as MeiraGTx Holdings PLC (MGTX) and Ovid Therapeutics (OVID) reported losses for their respective quarters and failed to meet revenue estimates, as noted in recent Zacks reports. This could indicate sector-specific challenges or company-specific issues, potentially affecting investor confidence negatively.
Overall, Twist Bioscience’s performance relative to its peers could make it a standout in the biotech sector, possibly attracting more investor interest due to its revenue performance amidst broader sector struggles.
The current price of $26.21 reflects a significant downtrend, evidenced by today’s sharp decline of 11.91%. This price is near the lower end of both the 52-week and year-to-date (YTD) ranges, having dropped approximately 52.63% from the highs of $55.33, and is only slightly above the lows around $23.30. This nearness to the 52-week and YTD lows suggests a bearish outlook.
The stock is also trading below all key moving averages (MA20, MA50, MA200), with respective deviations of -16.99%, -11.83%, and -24.03%, indicating a strong bearish trend over short, medium, and long-term periods. The Relative Strength Index (RSI) at 36.67 points to the stock being somewhat oversold but not extremely so, suggesting there might be a bit more room for downward movement before a potential reversal. Additionally, a negative MACD value (-0.29) confirms the prevailing downward momentum. Overall, the metrics illustrate a stock in a pronounced downtrend with potential for further declines unless a reversal pattern emerges.
Twist Bioscience Corporation reported a robust financial performance for fiscal year 2025, with total revenues reaching $376.6 million, marking a 20% increase from the previous year’s $313.0 million. This growth was driven by significant increases across all revenue streams: SynBio revenue rose by 17% to $145.0 million, NGS revenue by 23% to $208.1 million, and Biopharma revenue by 15% to $23.5 million. The company’s gross margin improved considerably to 50.7%, up from 42.6% in fiscal 2024.
Operating expenses showed mixed trends; while research and development expenses decreased to $80.3 million from $90.9 million, selling, general, and administrative expenses rose to $247.0 million from $218.4 million. The net loss for the year improved significantly to $77.7 million, or $1.30 per share, compared to a loss of $208.7 million, or $3.60 per share, in the prior year.
Looking ahead to fiscal 2026, Twist Bioscience anticipates revenues between $425 million and $435 million, representing a 13% to 15.5% growth year-over-year, with a projected gross margin above 52%. The company ended fiscal 2025 with a strong cash position of $232.4 million.
Earnings Trend Table
| Date | Estimate EPS | Reported EPS | Surprise % | |
|---|---|---|---|---|
| 0 | 2025-11-14 | -0.50 | -0.45 | -10.17 |
| 1 | 2025-05-05 | -0.58 | -0.66 | -14.63 |
| 2 | 2025-02-03 | -0.63 | -0.53 | 16.51 |
| 3 | 2024-11-18 | -0.71 | -0.59 | 16.90 |
| 4 | 2024-08-02 | -0.77 | -1.47 | -92.11 |
| 5 | 2024-05-02 | -0.82 | -0.79 | 3.29 |
| 6 | 2024-02-02 | -0.78 | -0.75 | 3.52 |
| 7 | 2023-11-17 | -0.92 | -0.81 | 12.05 |
Over the last eight quarters, there has been a notable fluctuation in the company’s earnings per share (EPS), displaying both underperformance and overperformance relative to estimates. The data illustrates a general trend of negative EPS, which suggests the company has consistently incurred losses during this period. However, the magnitude of these losses has shown some variance.
Initially, in Q4 2023, the company outperformed expectations with a reported EPS of -0.81 against an estimate of -0.92, marking a surprise of 12.05%. This trend of beating estimates continued through Q1 and Q2 of 2024, with surprises of 3.52% and 3.29%, respectively. However, a significant deviation occurred in Q3 2024, where the reported EPS drastically fell to -1.47 against an estimate of -0.77, resulting in a substantial negative surprise of -92.11%. This quarter represents a critical downturn in performance.
Following this, the company showed some recovery in Q4 2024 and Q1 2025, with positive surprises of 16.90% and 16.51%, respectively, indicating better-than-expected management of losses. The most recent quarters of Q2 and Q3 2025, however, exhibit a regression with EPS missing the estimates by -14.63% and -10.17%, respectively.
Overall, the EPS trends suggest volatility in the company’s financial performance, with significant unpredictability in managing losses. The data points towards an ongoing struggle to stabilize earnings, as evidenced by the mix of over and underperformance against analyst expectations. This pattern could be indicative of operational challenges or variable cost pressures facing the company.
The four most recent rating changes for the stock in question demonstrate a positive outlook from various financial analysis firms, each adjusting their target prices and ratings to reflect their optimism about the stock’s future performance.
- Stephens (2025-11-04): Stephens initiated coverage with an “Overweight” rating, assigning a target price of $41. This initiation suggests that Stephens views the stock as likely to outperform its sector average over the next 12 months.
- Wolfe Research (2024-12-13): Wolfe Research also initiated coverage, giving the stock an “Outperform” rating with a notably higher target price of $60. This target price is significantly higher than previous ratings, indicating Wolfe Research’s strong confidence in the stock’s potential to exceed market expectations.
- Guggenheim (2024-06-04): Guggenheim initiated coverage with a “Buy” rating and set a target price of $53. The firm’s bullish stance indicates a belief in strong fundamentals or potential market-beating performance from the stock.
- Goldman (2024-01-17): Goldman upgraded the stock from “Neutral” to “Buy,” adjusting the target price from $25 to $45. This substantial increase in target price and upgrade in rating reflects Goldman’s revised, more optimistic view on the stock’s valuation and prospects.
These rating changes collectively suggest a growing confidence among analysts in the stock’s performance, underscored by upward adjustments in target prices and predominantly positive ratings. The sequence of these changes, particularly the upgrades and higher price targets, could indicate improving fundamentals, market conditions, or both that favor the stock.
The current price of the stock is $26.21. This figure is significantly below the average target price provided by various analysts, which suggests a potential upside. Notably, Stephens sets a target at $41, Wolfe Research at $60, and Guggenheim at $53. Additionally, Goldman has upgraded their stance from Neutral to Buy, adjusting their price target from $25 to $45. This collective outlook from multiple reputable analysts indicates a strong consensus on the stock’s potential for growth beyond its current valuation.
Unfortunately, specific details on Earnings Per Share (EPS) trends and dividend policies are not provided in the data. However, the optimistic target prices and upgrades in ratings could imply positive expectations for the company’s financial performance, including potential improvements in EPS and a stable or possibly growing dividend yield. Investors should monitor these metrics as they are crucial for evaluating the company’s profitability and financial health.
Disclaimer: The information provided here is for educational and informational purposes only and should not be interpreted as financial advice, investment recommendations, or trading guidance. Markets involve risk, and past performance is not indicative of future results. You should always conduct your own research and consult with a qualified financial advisor before making any investment decisions. By acting, you accept full responsibility for your choices.