Zymeworks (NASDAQ:ZYME) Releases Earnings Results, Misses Expectations By $0.06 EPS

Zymeworks (NASDAQ:ZYME) posted its quarterly earnings data on Thursday. The company reported ($0.62) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.56) by ($0.06), FiscalAI reports. Zymeworks had a negative return on equity of 60.02% and a negative net margin of 405.31%.The firm had revenue of $4.59 million for the quarter, compared to the consensus estimate of $4.54 million. During the same period in the prior year, the company posted $0.03 earnings per share. Zymeworks’s quarterly revenue was down 90.6% on a year-over-year basis.

Zymeworks Stock Performance

Shares of ZYME opened at $23.54 on Friday. The company has a 50-day simple moving average of $23.99 and a 200-day simple moving average of $24.45. Zymeworks has a 52 week low of $11.51 and a 52 week high of $29.75. The firm has a market capitalization of $1.72 billion, a P/E ratio of -11.65 and a beta of 1.15.

Hedge Funds Weigh In On Zymeworks

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Quarry LP bought a new stake in shares of Zymeworks during the third quarter valued at approximately $50,000. Caitong International Asset Management Co. Ltd bought a new position in Zymeworks in the fourth quarter worth $55,000. Tower Research Capital LLC TRC boosted its stake in Zymeworks by 29.6% during the second quarter. Tower Research Capital LLC TRC now owns 4,947 shares of the company’s stock worth $62,000 after buying an additional 1,131 shares in the last quarter. BNP Paribas Financial Markets increased its holdings in Zymeworks by 157.7% in the 2nd quarter. BNP Paribas Financial Markets now owns 10,307 shares of the company’s stock valued at $129,000 after buying an additional 6,307 shares during the period. Finally, Brevan Howard Capital Management LP bought a new stake in Zymeworks in the 2nd quarter valued at $133,000. 92.89% of the stock is currently owned by institutional investors.

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.

Analyst Ratings Changes

ZYME has been the subject of a number of research analyst reports. Stifel Nicolaus set a $46.00 target price on shares of Zymeworks in a research report on Friday. Wells Fargo & Company lifted their price objective on Zymeworks from $37.00 to $40.00 and gave the stock an “overweight” rating in a research note on Friday. HC Wainwright lifted their price objective on Zymeworks from $46.00 to $51.00 and gave the stock a “buy” rating in a research note on Wednesday. Citigroup restated a “buy” rating on shares of Zymeworks in a research note on Tuesday, June 30th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Zymeworks in a report on Friday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $38.22.

Zymeworks declared that its Board of Directors has approved a share buyback plan on Thursday, May 14th that authorizes the company to buyback $125.00 million in shares. This buyback authorization authorizes the company to reacquire up to 7% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its shares are undervalued.

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.