Shares of IonQ (IONQ) plunged in after-hours trading after the quantum computing company reported earnings for its fourth quarter of Fiscal Year 2024. Earnings per share came in at -$0.93, which missed analysts’ consensus estimate of -$0.25 per share by a wide margin. However, sales increased by 91.8% year-over-year, with revenue hitting $11.7 million. This beat analysts’ expectations by $1.4 million.
In addition, full-year revenue reached $43.1 million, which surpassed its previously announced guidance range of $38.5 million to $42.5 million. This represents a significant 95% year-over-year growth from $22 million in the prior year. The company also saw a strong increase in bookings, with $95.6 million in new deals secured during the full year. Interestingly, $22.7 million of the new bookings came in the fourth quarter alone.
It is also worth noting that as of December 31, 2024, IonQ’s cash reserves stood at $363.8 million. However, these reserves are about to get a boost because the firm has reached an agreement with two investment banks, Morgan Stanley (MS) and Needham & Company, to sell up to $500 million worth of its shares over time. IonQ plans to use the money it raises for various business purposes, such as growing its quantum computing and networking businesses.
IonQ Appoints New CEO
In a separate development, IonQ has appointed Niccolo de Masi as its new CEO. Peter Chapman, who was the previous CEO, will continue as Executive Chair. De Masi has a strong background in business and physics and has been a member of IonQ’s board of directors since 2021. In addition, he brings extensive experience in driving growth and raising capital after having raised over $3 billion in equity for companies he has led.
Is IONQ Stock a Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on IONQ stock based on four Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 159% rally in its share price over the past year, the average IONQ price target of $44.20 per share implies 47.7% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
