TLDR
- Shares of D-Wave Quantum (QBTS) increased by 5.6% on Wednesday, reaching approximately $19.70, with a trading volume of 25.1 million.
- The company’s fourth-quarter fiscal 2025 earnings are scheduled for release on Thursday before the market opens; analysts are forecasting a loss of 6 cents per share on revenue of $3.72 million.
- Fifteen out of sixteen analysts recommend a buy rating for QBTS, with a consensus price target of $39.24, indicating a potential upside of over 110%.
- Recent business achievements consist of a $10 million, two-year contract with a Fortune 100 company and a $20 million sale of an Advantage2 system to Florida Atlantic University.
- Company insiders have sold more than 1 million shares in the last 90 days, a figure that includes the CFO’s sale of 100,000 shares at $30.03 each.
On Wednesday, D-Wave Quantum (QBTS) saw its stock price advance 5.6%, reaching a high of $19.81 before closing near $19.70. The stock had ended the previous trading session at $18.66.
Trading volume was reported at 25.1 million shares, which is roughly 24% lower than the stock’s average daily volume of 33 million shares.
This price movement occurs just a day before D-Wave is set to announce its fourth-quarter fiscal 2025 financial results on Thursday morning before the market opens.
Analysts project the company will report a loss of 6 cents per share with revenue of $3.72 million. This anticipated revenue figure would mark a 61.74% increase compared to the same period last year, while the per-share loss would show a 38.1% improvement year-over-year.
The projected loss is slightly wider than the 5-cent loss recorded in the previous quarter. The expected revenue is only marginally above the $3.7 million reported in the third quarter.
In the last quarter, the company surpassed expectations by reporting a loss of 5 cents per share against an estimated 7-cent loss, while revenue of $3.7 million exceeded forecasts by 22%.
There is widespread optimism on Wall Street ahead of the earnings release. Currently, fifteen out of sixteen analysts give QBTS a buy rating, and the average price target is $39.24. This suggests an upside potential of more than 110% from Wednesday’s closing price.
Earnings per share (EPS) estimates have increased by 4.46% over the last 60 days, signaling growing positive sentiment as the report approaches.
This month, TD Cowen analyst Krish Sankar started coverage of the stock with a buy rating. He commented that the company’s “leadership in quantum annealing is driving growth via high-margin, Advantage system sales and cloud services.”
Recent Contract Wins
The company recently disclosed a $10 million, two-year quantum computing services agreement with a Fortune 100 company. Additionally, Florida Atlantic University committed to a $20 million purchase of an Advantage2 system.
Investors will be paying close attention to whether management can clearly articulate how these agreements will lead to recurring and predictable revenue streams.
D-Wave markets itself as the sole provider of dual-platform quantum computing solutions, offering both annealing and gate-model systems. The company states its gate-model technology achieves qubit fidelity rates of 99.9% or higher.
While the company maintains gross margins above 82%, it continues to report operating losses. Achieving positive cash flow is dependent on revenue growth outpacing the increase in operating costs—a significant challenge for a firm making substantial investments in two distinct technology platforms simultaneously.
Insider Activity
The outlook from insider trading activity is less positive. Chief Financial Officer John M. Markovich sold 100,000 shares on December 22nd at an average price of $30.03, for a total value of $3 million. This transaction reduced his holdings by 6.36%.
On December 15th, Director Rohit Ghai sold 10,000 shares at $24.28 per share, decreasing his position by 20.93%.
In aggregate, insiders have disposed of more than 1.07 million shares over the past 90 days, with a total value of approximately $31.5 million.
The stock’s 50-day moving average is $24.58, and its 200-day moving average is $24.96. QBTS has a market capitalization of $7.29 billion and a beta of 1.56.
Institutional investors hold 42.47% of the company’s stock.
The stock’s 52-week low is $4.45.
