Zymeworks (NASDAQ:ZYME) Posts Earnings Results, Misses Estimates By $0.05 EPS

Zymeworks (NASDAQ:ZYME) posted its quarterly earnings results on Thursday. The company reported ($0.62) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.57) by ($0.05), FiscalAI reports. The business had revenue of $4.59 million during the quarter, compared to the consensus estimate of $3.81 million. Zymeworks had a negative net margin of 126.92% and a negative return on equity of 37.97%. The firm’s revenue was down 90.6% on a year-over-year basis. During the same quarter last year, the company posted $0.03 EPS.

Zymeworks Stock Performance

Shares of NASDAQ:ZYME traded up $0.41 during midday trading on Friday, hitting $23.54. 578,107 shares of the stock were exchanged, compared to its average volume of 672,596. The business’s 50-day moving average price is $24.02 and its 200 day moving average price is $24.46. Zymeworks has a 12 month low of $11.51 and a 12 month high of $29.75. The stock has a market capitalization of $1.72 billion, a price-to-earnings ratio of -17.18 and a beta of 1.15.

Zymeworks announced that its board has authorized a stock buyback program on Thursday, May 14th that permits the company to buyback $125.00 million in outstanding shares. This buyback authorization permits the company to repurchase up to 7% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.

Analysts Set New Price Targets

ZYME has been the subject of several analyst reports. Truist Financial lifted their price objective on Zymeworks from $31.00 to $32.00 and gave the company a “buy” rating in a report on Friday. Wells Fargo & Company raised their price target on Zymeworks from $37.00 to $40.00 and gave the stock an “overweight” rating in a research report on Friday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Zymeworks in a research report on Friday, July 17th. Citigroup reissued a “buy” rating on shares of Zymeworks in a report on Tuesday, June 30th. Finally, Stifel Nicolaus set a $46.00 target price on shares of Zymeworks in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Zymeworks has a consensus rating of “Moderate Buy” and an average target price of $38.22.

Key Zymeworks News

Here are the key news stories impacting Zymeworks this week:

• Positive Sentiment: Truist raises target and maintains a Buy rating: Truist Financial lifted its price target from $31 to $32, implying substantial upside from recent trading levels. The firm’s continued Buy recommendation may support investor confidence. Benzinga article
• Positive Sentiment: Analysts remain broadly bullish: HC Wainwright reiterated its Buy rating and $51 price target, while a separate brokerage report cited an average price target of $37.33. These targets suggest analysts see meaningful long-term value in Zymeworks despite near-term losses. Average price target article
• Neutral Sentiment: Revenue exceeded expectations: Zymeworks reported quarterly revenue of $4.59 million, ahead of the $3.81 million consensus estimate. However, the company remains unprofitable, limiting the positive impact of the revenue beat. Zacks earnings article
• Negative Sentiment: Quarterly loss was wider than expected: Zymeworks posted a loss of $0.62 per share, missing estimates for a $0.56–$0.57 loss and reversing year-earlier earnings of $0.03 per share. Revenue also declined 90.6% year over year, while the company reported a negative net margin and return on equity. Zymeworks earnings release
• Negative Sentiment: HC Wainwright cut earnings forecasts: The firm reduced its FY2026 EPS estimate from $1.00 to $0.36 and lowered its Q2 and Q4 forecasts to losses of $0.58 and $0.54 per share, respectively. It also trimmed its Q3 estimate to $2.09 from $2.17, signaling weaker near-term earnings expectations.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Siren L.L.C. bought a new stake in shares of Zymeworks during the 4th quarter valued at about $44,238,000. Rubric Capital Management LP increased its holdings in Zymeworks by 22.1% in the fourth quarter. Rubric Capital Management LP now owns 5,750,000 shares of the company’s stock worth $151,398,000 after purchasing an additional 1,039,449 shares in the last quarter. Millennium Management LLC increased its holdings in Zymeworks by 851.6% in the third quarter. Millennium Management LLC now owns 1,104,813 shares of the company’s stock worth $18,870,000 after purchasing an additional 988,711 shares in the last quarter. Vestal Point Capital LP increased its stake in shares of Zymeworks by 130.0% in the 2nd quarter. Vestal Point Capital LP now owns 1,150,000 shares of the company’s stock valued at $14,432,000 after acquiring an additional 650,000 shares in the last quarter. Finally, Adage Capital Partners GP L.L.C. bought a new stake in shares of Zymeworks in the 2nd quarter valued at $5,974,000. 92.89% of the stock is owned by institutional investors.

Zymeworks Company Profile

Zymeworks Inc is a clinical-stage biopharmaceutical company dedicated to the discovery, development and commercialization of next-generation multifunctional biotherapeutics. The company specializes in engineered antibody and protein therapeutics designed to address a range of unmet medical needs in oncology and other serious diseases. Through its proprietary platforms, Zymeworks aims to create novel bispecific and multispecific molecules that can simultaneously engage multiple targets and recruit immune effector functions to enhance potency and specificity.

At the core of Zymeworks’ innovation is its Azymetric™ bispecific antibody platform, which enables the design of asymmetrical bispecific antibodies with controlled assembly and high stability.