HC Wainwright Issues Pessimistic Estimate for Bright Minds Biosciences Earnings

Bright Minds Biosciences Inc. (NASDAQ:DRUG - Free Report) is facing a downgrade in earnings estimates from investment analysts at HC Wainwright. In a research note that was released to investors on February 19th, it was indicated that the firm has lowered its earnings per share (EPS) forecast for the third quarter of 2025.

Analyst Adjustments

HC Wainwright analyst P. Trucchio has revised the expected EPS for Bright Minds Biosciences for Q3 2025 from a previous estimate of ($0.72) to the current estimation of ($0.73). Alongside this adjustment, the firm has maintained a "Buy" rating on the stock with a price target of $85.00. Meanwhile, the consensus expectation for Bright Minds Biosciences for the full year 2025 remains at an EPS of ($1.33).

Future Earnings Expectations

Further estimates provided by HC Wainwright include predictions for the fourth quarter of 2025, set at ($0.88) EPS, and for the full year, which is now forecasted to be at ($2.30) EPS. Looking ahead to 2026 and 2027, Q1 2026 earnings are forecasted at ($0.96) EPS, followed by ($1.27) EPS in Q2 2026, and predictions become considerably more negative with Q3 2026 at ($1.54) EPS and Q4 2026 at ($1.79) EPS. For FY2026, the estimate stands at ($5.63) EPS while for FY2027, it is slightly better at ($5.72) EPS, eventually reaching ($5.80) EPS by FY2028 and a further decline at ($1.70) EPS for FY2029.

Previous Earnings Report

This update follows Bright Minds Biosciences’ quarterly earnings report on February 13th, where the company exceeded expectations with an EPS of $0.01, significantly outperforming the analysts' consensus estimate of ($0.23) by $0.24.

Market Reception and Institutional Investments

The stock performance of Bright Minds Biosciences shows a volatile market presence, with shares opening at $36.15 recently. The company has seen a substantial increase over the past year, with its stock price rising from a 52-week low of $0.93 to a high of $79.02.

Institutional investors have also been active with their dealings in Bright Minds Biosciences, with several firms acquiring new stakes last quarter. For instance, Bank of America Corp DE purchased shares valued at $173,000 while Jane Street Group LLC added $238,000. Collectively, over 40% of the stock is held by institutional investors and hedge funds.

Company Overview

Bright Minds Biosciences is a biotechnology firm that is committed to developing therapeutics aimed at improving the lives of patients with severe and life-altering diseases. The company’s product pipeline includes selective 5-HT receptor agonists targeted towards treating conditions such as epilepsy, pain, and neuropsychiatry. Notable among its developments is BMB-101, which is currently completing its phase 1 trial for an undisclosed seizure disorder.

Final Thoughts

The adjustments in earnings estimates by HC Wainwright signal challenges ahead for Bright Minds Biosciences, raising concerns among investors regarding its future financial performance. While the company continues to pursue innovative treatments, potential investors may want to keep a close watch on upcoming earnings reports and market responses.

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