Quantum computing company IonQ (NYSE: IONQ) will be announcing earnings results tomorrow after market close. Here’s what to expect.
IonQ beat analysts’ revenue expectations by 15.9% last quarter, reporting revenues of $11.71 million, up 91.8% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates.
Is IonQ a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting IonQ’s revenue to decline 1.1% year on year to $7.50 million, a reversal from the 76.9% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.15 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. IonQ has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 17.2% on average.
Looking at IonQ’s peers in the it services & other tech segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Xerox’s revenues decreased 3% year on year, meeting analysts’ expectations, and Grid Dynamics reported revenues up 25.8%, topping estimates by 2%. Xerox traded up 9.8% following the results while Grid Dynamics was down 3.1%.
Read our full analysis of Xerox’s results here and Grid Dynamics’s results here.
There has been positive sentiment among investors in the it services & other tech segment, with share prices up 11.2% on average over the last month. IonQ is up 29.9% during the same time and is heading into earnings with an average analyst price target of $40.60 (compared to the current share price of $29.55).
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