D-Wave Quantum Inc.

🇺🇸New York Stock Exchange
Back to all articles
D-Wave Quantum Inc. stock analysis QBTS overview
Somewhat Bearish -25

D-Wave Quantum Analysts Slash Their Forecasts After Q1 Results

📉 D-Wave Quantum reported first-quarter revenue of $2.85 million, which missed analyst estimates of $4.13 million and represents an 81% year-over-year decline.

💸 The company posted a loss of 5 cents per share, slightly beating the consensus expectation of a 9 cent loss.

📈 First-quarter bookings surged significantly to $33.4 million, reflecting a 1,994% increase compared to the first quarter of the prior year.

📊 CEO Dr. Alan Baratz highlighted strong execution and expanding commercial adoption in his commentary on earnings.

📉 D-Wave shares dropped 3% to trade at $21.68 following the release of Q1 results on Wednesday.

🔽 Mizuho analyst Vijay Rakesh maintained an Outperform rating but lowered the price target from $31 to $29.

🔽 Canaccord Genuity analyst Kingsley Crane kept a Buy rating while cutting the price target from $43 to $41.

💬 The headline indicates that analysts have slashed their forecasts after the mixed financial results were announced.

Bullish Signals
  • D-Wave beat the consensus estimate for its first-quarter loss by reporting a $0.05 per share loss versus a expected loss of $0.09.
  • First-quarter bookings surged 1,994% year-over-year to $33.4 million, demonstrating significant growth in commercial adoption.
  • Bookings also increased by 149% compared to the fourth quarter of the same year, reflecting strong momentum.
  • CEO Dr. Alan Baratz highlighted the company's strong execution and differentiated technology leadership across annealing and gate model quantum computing.
  • Despite lower price targets from analysts, Mizuho maintained an Outperform rating on the stock.
Risk Factors
  • D-Wave Quantum reported revenue of $2.85 million, which missed the consensus estimate of $4.13 million and represents an 81% year-over-year decline.
  • The company reported a loss of 5 cents per share against an expected loss of 9 cents per share.
  • Analysts lowered their price targets following earnings: Mizuho reduced its target from $31 to $29, while Canaccord Genuity cut theirs from $43 to $41.
Full Analysis
D-Wave Quantum Inc. (NYSE:QBTS) released its first-quarter earnings report on Tuesday, delivering mixed financial signals that have prompted analysts to adjust their forecasts downwards. The company reported a net loss of 5 cents per share, which narrowly beat the market consensus expectation of a 9 cent loss. However, revenue came in at $2.85 million, significantly missing the estimated $4.13 million mark and marking an 81% year-over-year decline compared to the previous period. The most notable metric was bookings, which surged to $33.4 million. This represents a staggering 1,994% increase from $1.6 million in the first quarter of the prior reporting cycle and a 149% rise from the fourth quarter of that same year. CEO Dr. Alan Baratz attributed the performance to strong execution, expanding commercial adoption, and leadership in both annealing and gate model quantum computing technologies. Following the earnings announcement, D-Wave's stock price fell 3% to trade at $21.68 on Wednesday as analysts revised their price targets downward despite maintaining positive ratings. Mizuho analyst Vijay Rakesh kept his Outperform rating but lowered the price target from $31 to $29, while Canaccord Genuity analyst Kingsley Crane maintained a Buy rating with a reduced price target of $41, down from $43. The article originates from Benzinga and focuses specifically on these earnings results and subsequent market reactions for QBTS.