According to Benzinga Pro, during Q4, Atea Pharmaceuticals (NASDAQ:AVIR) earned $117.13 million, a 515.45% increase from the preceding quarter. Atea Pharmaceuticals also posted a total of $192.18 million in sales, a 485.72% increase since Q3. Atea Pharmaceuticals collected $32.81 million in revenue during Q3, but reported earnings showed a $28.19 million loss.
Why Is ROIC Significant?
Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q4, Atea Pharmaceuticals posted an ROIC of -3.81%.
Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.
Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q4, Atea Pharmaceuticals posted an ROIC of -3.81%.
Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.
For Atea Pharmaceuticals, a negative ROIC ratio of -3.81% suggests that management may not be effectively allocating their capital. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns; poor capital allocation can be a leech on the performance of a company over time.
Analyst Predictions
Atea Pharmaceuticals reported Q4 earnings per share at $1.34/share, which beat analyst predictions of $0.17/share.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
