Shares of Rigetti Computing (RGTI) fell in after-hours trading after the quantum computing firm reported earnings for its fourth quarter of Fiscal Year 2024. Earnings per share came in at -$0.68, which missed analysts’ consensus estimate of -$0.07 per share. In addition, sales decreased by -32.8% year-over-year, with revenue hitting $2.27 million. This also missed analysts’ expectations of $2.5 million. Given that the company is still in the early stages of developing its products, it did not provide guidance.
Interestingly, though, Rigetti highlighted its new strategic partnership with Global Fortune 500 company Quanta Computer. This collaboration will involve a joint investment of more than $100 million each over the next five years with the hope of accelerating the commercialization of superconducting quantum computing. Moreover, Rigetti announced that it achieved several important technological milestones.
One major breakthrough was the launch of its new 84-qubit Ankaa-3 system that features improved performance thanks to its redesigned hardware. The company also set a new record for accuracy when it comes to its two-qubit gate, which is when two qubits interact with each other and become connected in order to perform more complex calculations. Furthermore, Rigetti successfully used artificial intelligence to fine-tune its quantum processing unit. This shows that AI has the potential to significantly improve quantum computer performance.
Is RGTI Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on RGTI stock based on five Buys assigned in the past three months, as indicated by the graphic below. After a 47% decline in its share price on a year-to-date basis, the average RGTI price target of $15.25 per share implies 89.21% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
