Arcus Biosciences (NYSE:RCUS) Posts Quarterly Earnings Results, Beats Expectations By $0.17 EPS

Arcus Biosciences (NYSE:RCUS) released its earnings results on Wednesday. The company reported ($0.72) EPS for the quarter, topping analysts’ consensus estimates of ($0.89) by $0.17, FiscalAI reports. The company had revenue of $41.00 million for the quarter, compared to analysts’ expectations of $21.98 million. Arcus Biosciences had a negative return on equity of 68.97% and a negative net margin of 156.36%.The firm’s revenue was down 74.4% compared to the same quarter last year.

Here are the key takeaways from Arcus Biosciences’ conference call:

• Arcus remains on track to complete enrollment in the phase 3 PEAK-1 trial of casdatifan plus cabozantinib in second-line clear-cell renal cell carcinoma by year-end and plans to initiate the frontline PEAK-20 registrational study by the end of 2026.
• The company expects substantial casdatifan data in October, including first-line, second-line and late-line efficacy and safety readouts from more than 200 patients. Management believes the data could support casdatifan’s potential as a backbone therapy across the RCC treatment paradigm.
• Arcus expanded clinical collaborations with BMS, Summit Therapeutics and AVEO Oncology to test casdatifan in additional combinations and settings while retaining its rights, supporting a broader and more capital-efficient development strategy.
• Arcus plans to initiate human dosing of its oral MRGPRX2 antagonist AB102 this month, with initial pharmacokinetic data expected in the fourth quarter, while its selective TNF receptor 1 inhibitor is expected to enter the clinic in early 2027.
• Cash and investments declined to $775 million from $876 million in the prior quarter, and full-year 2026 revenue guidance is $65 million–$75 million; management also expects lower collaboration revenue as the Gilead domvanalimab program winds down.

Arcus Biosciences Price Performance

Shares of NYSE:RCUS traded down $0.89 on Wednesday, hitting $27.91. The company’s stock had a trading volume of 1,043,811 shares, compared to its average volume of 1,022,413. The company has a 50-day simple moving average of $27.26 and a 200 day simple moving average of $24.18. Arcus Biosciences has a 1 year low of $8.88 and a 1 year high of $31.74. The company has a market capitalization of $3.51 billion, a PE ratio of -8.78 and a beta of 0.80. The company has a debt-to-equity ratio of 0.19, a current ratio of 4.04 and a quick ratio of 4.04.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on RCUS shares. The Goldman Sachs Group increased their price target on shares of Arcus Biosciences from $30.00 to $34.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Wall Street Zen lowered shares of Arcus Biosciences from a “hold” rating to a “sell” rating in a research report on Saturday, May 9th. Morgan Stanley boosted their target price on shares of Arcus Biosciences from $20.00 to $22.00 and gave the company an “equal weight” rating in a research note on Monday, May 11th. Lifesci Capital initiated coverage on shares of Arcus Biosciences in a research report on Thursday, June 4th. They set an “outperform” rating and a $46.00 target price for the company. Finally, Truist Financial began coverage on shares of Arcus Biosciences in a research note on Monday, May 18th. They set a “buy” rating and a $35.00 price target for the company. Eight analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Arcus Biosciences presently has an average rating of “Moderate Buy” and a consensus price target of $36.40.

Insider Activity

In related news, CFO Robert C. Goeltz II sold 7,763 shares of the firm’s stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $25.63, for a total value of $198,965.69. Following the sale, the chief financial officer directly owned 84,161 shares of the company’s stock, valued at $2,157,046.43. This trade represents a 8.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Alexander Azoy sold 2,562 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $25.77, for a total transaction of $66,022.74. Following the completion of the sale, the chief accounting officer directly owned 39,581 shares in the company, valued at $1,020,002.37. This represents a 6.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 110,325 shares of company stock worth $3,174,319. 7.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Arcus Biosciences

A number of institutional investors have recently made changes to their positions in the stock. T. Rowe Price Investment Management Inc. bought a new stake in Arcus Biosciences in the fourth quarter worth $39,000. Tower Research Capital LLC TRC grew its stake in shares of Arcus Biosciences by 184.2% during the second quarter. Tower Research Capital LLC TRC now owns 8,449 shares of the company’s stock valued at $69,000 after buying an additional 5,476 shares during the last quarter. Strs Ohio bought a new position in shares of Arcus Biosciences during the first quarter valued at about $67,000. Inceptionr LLC purchased a new position in shares of Arcus Biosciences in the fourth quarter worth about $210,000. Finally, Brevan Howard Capital Management LP purchased a new position in shares of Arcus Biosciences in the second quarter worth about $97,000. Institutional investors own 92.89% of the company’s stock.

About Arcus Biosciences

Arcus Biosciences is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel cancer immunotherapies. The company’s research platform centers on modulating tumor microenvironments and immune checkpoints through both small-molecule and antibody-based candidates. Arcus aims to enhance antitumor immune responses by targeting pathways such as the adenosine axis and inhibitory receptors on immune cells.

The company’s lead clinical programs include etrumadenant, an orally administered A2A adenosine receptor antagonist being evaluated in combination with anti-PD-1 therapy, and domvanalimab, an anti-TIGIT monoclonal antibody.