Rigetti Q3 Earnings Preview: What To Expect From Upcoming Report

What happened

Rigetti Computing is scheduled to report third-quarter results after trading closes on Tuesday, Nov. 10. Analysts expect a loss of about $0.06 per share, versus $0.05 in the second quarter. Investors may seek updates on demand, customer agreements, and operating expenses.

Confirmed

Global impact / market context

The report could show whether demand for Rigetti’s quantum-computing systems is translating into commercial or research activity and whether customer agreements are progressing. If operating expenses keep rising, they could widen losses and increase the need for cash before revenue grows enough to cover costs.

Analyst inference

The article says options traders appear to expect a roughly 25% stock move after results, compared with an approximately 8.5% realized move in August. Implied volatility, a measure of expected price swings, has often exceeded 200% on some contracts expiring around Nov. 13.

Confirmed

What to watch

1. Look for reported results against the expected loss of about $0.06 per share, and compare operating expenses with the $30.3 million reported in the second quarter. Analyst inference
2. Check for updates on demand for the 108-qubit Cepheus system and acceptance testing for the $8.4 million C-DAC order, slated for the fourth quarter. Analyst inference
3. Watch for execution details on the $100 million Department of Commerce agreement; progress could clarify whether the contract is turning into delivered work and revenue. Analyst inference

Evidence

• gurufocus.com