Arcus Biosciences (NYSE:RCUS) Releases Quarterly Earnings Results, Beats Estimates By $0.17 EPS

Arcus Biosciences (NYSE:RCUS) announced its quarterly earnings results on Wednesday. The company reported ($0.72) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.89) by $0.17, FiscalAI reports. Arcus Biosciences had a negative net margin of 156.36% and a negative return on equity of 68.97%. The company had revenue of $41.00 million for the quarter, compared to analysts’ expectations of $21.98 million. The company’s revenue was down 74.4% on a year-over-year basis.

Here are the key takeaways from Arcus Biosciences’ conference call:

• Arcus remains on track to complete enrollment in the phase 3 PEAK-1 trial of casdatifan plus cabozantinib in second-line clear-cell renal cell carcinoma by year-end and plans to initiate the frontline PEAK-20 registrational study by the end of 2026.
• The company expects substantial casdatifan data in October, including first-line, second-line and late-line efficacy and safety readouts from more than 200 patients. Management believes the data could support casdatifan’s potential as a backbone therapy across the RCC treatment paradigm.
• Arcus expanded clinical collaborations with BMS, Summit Therapeutics and AVEO Oncology to test casdatifan in additional combinations and settings while retaining its rights, supporting a broader and more capital-efficient development strategy.
• Arcus plans to initiate human dosing of its oral MRGPRX2 antagonist AB102 this month, with initial pharmacokinetic data expected in the fourth quarter, while its selective TNF receptor 1 inhibitor is expected to enter the clinic in early 2027.
• Cash and investments declined to $775 million from $876 million in the prior quarter, and full-year 2026 revenue guidance is $65 million–$75 million; management also expects lower collaboration revenue as the Gilead domvanalimab program winds down.

Arcus Biosciences Stock Performance

NYSE:RCUS traded down $0.89 during mid-day trading on Wednesday, reaching $27.91. The company’s stock had a trading volume of 1,043,811 shares, compared to its average volume of 1,022,413. Arcus Biosciences has a 12-month low of $8.88 and a 12-month high of $31.74. The firm’s fifty day moving average price is $27.26 and its two-hundred day moving average price is $24.18. The company has a current ratio of 4.04, a quick ratio of 4.04 and a debt-to-equity ratio of 0.19. The stock has a market cap of $3.51 billion, a P/E ratio of -8.78 and a beta of 0.80.

Insider Buying and Selling at Arcus Biosciences

In other news, CFO Robert C. Goeltz II sold 7,763 shares of the firm’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $25.63, for a total transaction of $198,965.69. Following the sale, the chief financial officer owned 84,161 shares of the company’s stock, valued at $2,157,046.43. This trade represents a 8.45% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Alexander Azoy sold 2,562 shares of Arcus Biosciences stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $25.77, for a total transaction of $66,022.74. Following the completion of the sale, the chief accounting officer owned 39,581 shares of the company’s stock, valued at $1,020,002.37. This represents a 6.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 110,325 shares of company stock worth $3,174,319. Company insiders own 7.60% of the company’s stock.

Institutional Investors Weigh In On Arcus Biosciences

A number of hedge funds have recently added to or reduced their stakes in the stock. T. Rowe Price Investment Management Inc. bought a new position in shares of Arcus Biosciences during the 4th quarter valued at $39,000. Tower Research Capital LLC TRC grew its holdings in shares of Arcus Biosciences by 184.2% in the second quarter. Tower Research Capital LLC TRC now owns 8,449 shares of the company’s stock worth $69,000 after acquiring an additional 5,476 shares during the period. Strs Ohio bought a new stake in shares of Arcus Biosciences in the first quarter worth $67,000. Inceptionr LLC purchased a new stake in Arcus Biosciences during the fourth quarter valued at $210,000. Finally, Brevan Howard Capital Management LP purchased a new stake in Arcus Biosciences during the second quarter valued at $97,000. 92.89% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. Morgan Stanley raised their price objective on shares of Arcus Biosciences from $20.00 to $22.00 and gave the company an “equal weight” rating in a research note on Monday, May 11th. The Goldman Sachs Group increased their price target on shares of Arcus Biosciences from $30.00 to $34.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Leerink Partners set a $47.00 price target on shares of Arcus Biosciences in a report on Monday, April 20th. Wall Street Zen downgraded shares of Arcus Biosciences from a “hold” rating to a “sell” rating in a research report on Saturday, May 9th. Finally, HC Wainwright boosted their price objective on shares of Arcus Biosciences from $32.00 to $45.00 and gave the stock a “buy” rating in a report on Monday, July 20th. Eight analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $36.40.

About Arcus Biosciences

Arcus Biosciences is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel cancer immunotherapies. The company’s research platform centers on modulating tumor microenvironments and immune checkpoints through both small-molecule and antibody-based candidates. Arcus aims to enhance antitumor immune responses by targeting pathways such as the adenosine axis and inhibitory receptors on immune cells.

The company’s lead clinical programs include etrumadenant, an orally administered A2A adenosine receptor antagonist being evaluated in combination with anti-PD-1 therapy, and domvanalimab, an anti-TIGIT monoclonal antibody.