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

Zymeworks (NASDAQ:ZYME) announced its quarterly earnings results on Thursday. The company reported ($0.62) EPS for the quarter, missing analysts’ consensus estimates of ($0.57) by ($0.05), FiscalAI reports. The company 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 business’s revenue was down 90.6% compared to the same quarter last year. During the same period last year, the company earned $0.03 earnings per share.

Zymeworks Stock Up 1.8%

Shares of ZYME traded up $0.41 on Friday, hitting $23.54. The company’s stock had a trading volume of 546,560 shares, compared to its average volume of 672,582. The firm’s fifty day moving average price is $24.02 and its 200-day moving average price is $24.46. Zymeworks has a fifty-two week low of $11.51 and a fifty-two week high of $29.75. The firm has a market capitalization of $1.72 billion, a price-to-earnings ratio of -17.18 and a beta of 1.15.

Zymeworks declared that its Board of Directors has initiated a stock buyback plan on Thursday, May 14th that allows the company to repurchase $125.00 million in shares. This repurchase authorization allows the company to repurchase up to 7% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board believes its shares are undervalued.

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

A number of institutional investors have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd bought a new position in Zymeworks during the 4th quarter worth about $55,000. Quarry LP bought a new stake in shares of Zymeworks in the third quarter valued at about $50,000. Tower Research Capital LLC TRC lifted its holdings in shares of Zymeworks by 29.6% in the second quarter. Tower Research Capital LLC TRC now owns 4,947 shares of the company’s stock valued at $62,000 after purchasing an additional 1,131 shares in the last quarter. Brooklyn Investment Group acquired a new position in shares of Zymeworks during the fourth quarter worth about $214,000. Finally, VARCOV Co. acquired a new position in shares of Zymeworks during the fourth quarter worth about $259,000. Institutional investors own 92.89% of the company’s stock.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on ZYME shares. Citigroup reissued a “buy” rating on shares of Zymeworks in a research note on Tuesday, June 30th. Truist Financial upped their target price on shares of Zymeworks from $31.00 to $32.00 and gave the company a “buy” rating in a research note on Friday. Weiss Ratings reissued a “sell (d-)” rating on shares of Zymeworks in a research report on Friday, July 17th. Wells Fargo & Company boosted their price target on shares of Zymeworks from $37.00 to $40.00 and gave the company an “overweight” rating in a report on Friday. Finally, Stifel Nicolaus set a $46.00 price objective on shares of Zymeworks in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Zymeworks currently has a consensus rating of “Moderate Buy” and a consensus target price of $38.22.

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.