Shares of the quantum computing hardware and software company, IonQ (NYSE:IONQ) are among the top-performing stocks this year (see the image below). After witnessing a blistering rally, IONQ stock cooled off a bit. However, the company’s solid bookings outlook once again lifted investors’ sentiment. But, with the massive year-to-date gain, IONQ could find it hard to exceed its 52-week high of $20.14 in the near term.
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Notably, IonQ increased its 2023 bookings outlook to $56 million, up from $49 million. This is the second time the company has bumped up its booking guidance. Earlier, in June, IonQ raised its booking outlook by 25%.
The upward revision in guidance comes on the heels of its impressive second-quarter performance, wherein it achieved record-setting bookings of $28 million. Following the upbeat outlook, IONQ stock gained about 8.46% in after-hours trading. While IonQ stock is trending higher, let’s look at its second-quarter performance.
Q2 Results in Brief
IonQ recognized revenue of $5.5 million, which was well above its guidance range of $4.1 million to $4.5 million. Further, it increased 111% year-over-year and surpassed analysts’ expectations of $4.35 million.
The company achieved $28.0 million in new bookings, bringing the total bookings to $32.2 million year-to-date. IonQ reported a net loss of $43.7 million, or $0.22 per share, which was higher than analysts’ estimates of a loss of $0.13 per share.
IonQ’s revenues came ahead of Street’s projection. However, its loss expanded on a year-over-year basis. Against this backdrop, let’s look at analysts’ recommendations for IONQ stock.
Is IonQ a Buy or a Sell?
Given the rally in its stock, IonQ has far exceeded analysts’ average price targets. Thus, Wall Street analysts are cautiously optimistic about IonQ stock. It has a Moderate Buy consensus rating on TipRanks based on three Buy and three Hold recommendations.
However, most of these ratings were given before the company’s Q2 earnings. Whether the upbeat bookings outlook will lead analysts to change their views remains a wait-and-see story. However, the stock could witness an upward revision in price targets.
Analysts have a 12-month average price target of $8.75, which implies a downside potential of about 38.34% from its current levels.
Bottom Line
IonQ is a leading player in the emerging quantum technology space. Its latest generation system positions it well to capitalize on the large quantum computing market. However, the stock has already gained quite a lot, implying that positives are already reflected in IonQ’s share price.
