D-Wave Quantum (QBTS) is set to report earnings on November 6 before the market opens. Analysts predict that the quantum computing company’s EPS will come in at -$0.07 per share on revenue of around $3.03 million. This is compared to -$0.07 and $1.87 million, respectively, in the previous year’s quarter. Interestingly, the company has been making progress on the technology side. Recently, D-Wave launched its new Advantage2 quantum computer, which features a more advanced design and better qubit connectivity.
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As a result of this upgrade, D-Wave may attract more government and commercial clients, as it improves performance for real-world applications. In addition, the company just completed a $400 million equity offering, which brings its cash reserves to about $815 million. This added funding gives D-Wave more runway to invest in its growth and continue developing its technology.
Moreover, Needham recently raised its price target for the stock from $25 to $30. Importantly, it pointed to strong momentum in the quantum computing space and the recent Advantage2 reveal as positive catalysts. Five-star analyst Quinn Bolton emphasized that D-Wave’s hybrid approach gives it a unique edge in the quantum race, especially as it begins commercializing use cases beyond pure R&D.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a 13.9% move in either direction.
Is QBTS Stock a Good Buy?
Turning to Wall Street, analysts have a Strong consensus rating on QBTS stock based on 10 Buys assigned in the past three months, as indicated by the graphic below. Furthermore, the average QBTS price target of $27 per share implies 13% downside risk.
