2seventy bio, Inc. (NASDAQ:TSVT) is preparing to announce its quarterly earnings on March 18, 2025. Analysts expect the company to report an earnings per share (EPS) of -$0.20 and revenue of about $13 million. Despite these projections, the company has recently been upgraded to a Zacks Rank #2 (Buy), indicating a positive outlook on its earnings potential.
The Zacks Rank upgrade suggests that TSVT's stock might see upward movement soon. This ranking system is based on a company's evolving earnings picture and is considered a reliable tool for investors. It tracks EPS estimates for the current and following years, providing a more objective measure than subjective Wall Street analyst upgrades.
TSVT's financial metrics reveal some challenges. The company has a negative P/E ratio of -2.73, indicating negative earnings. However, its price-to-sales ratio of 5.59 shows that investors are willing to pay $5.59 for every dollar of sales, reflecting some confidence in its revenue potential.
The enterprise value to sales ratio is 9.70, suggesting a high valuation relative to revenue. Additionally, the enterprise value to operating cash flow ratio is -3.18, indicating difficulties in generating positive cash flow from operations. Despite these challenges, TSVT maintains a strong liquidity position with a current ratio of 4.95.
TSVT's debt-to-equity ratio is 1.08, showing a moderate level of debt compared to equity. This balance suggests that while the company faces earnings challenges, it has managed its debt levels reasonably well. The earnings yield of -36.58% further highlights the negative earnings situation, but the recent Zacks upgrade reflects optimism about future improvements.
