D-Wave Quantum (QBTS), a provider of quantum computing systems and services, is set to report its Q3 earnings before market open on Thursday, November 6. Based on options pricing, traders are bracing for a 12.88% move in either direction. That is a large swing compared to QBTS’ three-year average post-earnings move of 0.04%, which points to high expectations and uncertainty in the upcoming report.
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It must be noted that D-Wave stock has already dipped about 10% ahead of earnings, partly due to sector-wide jitters triggered by competitor Xanadu’s IPO announcement.
Nevertheless, the company has announced some positive updates recently. Today, the company said it completed a major proof-of-concept project in which it cut production scheduling time from 10 hours to just five seconds by using hybrid-quantum computing.
Also, earlier this week, D-Wave deployed its Advantage2 quantum computer at Davidson Technologies in Alabama, its second U.S.-based system and a key milestone in expanding commercial access.
Expectations from QBTS’ Q3 Results
Wall Street is expecting QBTS to report a loss of $0.066 per share, compared with a loss per share of $0.072 in the same period last year. Also, analysts project revenues of $3.03 million, up from $1.87 million in the year-ago quarter.
At the upcoming results, investors will be watching for signs that D-Wave’s quantum systems are gaining commercial traction, customer adoption, and revenue sustainability.
Is QBTS a Good Stock to Buy?
Turning to Wall Street, D-Wave Quantum stock has a Strong Buy consensus rating based on 10 Buys assigned in the last three months. At $27.00, the average QBTS stock price target implies a 12.65% downside risk.
