Key Takeaways:
D-Wave Quantum and Rigetti Computing report second-quarter results Aug. 6, testing whether bookings and revenue growth justify rallies of 75.1% and 43.1% in the April-June period.
Both pureplay quantum computing stocks outpaced the Computer and Technology sector's 26.6% gain and the S&P 500's 14.6% advance during the quarter, leaving little room for disappointment, according to Zacks Investment Research.
D-Wave enters the report after record first-quarter bookings of $33.4 million and remaining performance obligations of $42.4 million, supported by a $20 million system sale and a $10 million enterprise quantum-computing-as-a-service agreement. The Zacks consensus estimate calls for a 9-cent loss on $3.82 million in revenue, up 23.2% year over year. D-Wave missed estimates in three of the trailing four quarters, with an average negative surprise of 351.22%.
Rigetti's first-quarter revenue nearly tripled year over year, driven by Novera quantum processing unit deliveries, with most remaining Novera purchase-order revenue expected to be recognized in the second quarter. The consensus estimate is a 3-cent loss on $4.91 million in revenue, up 173% year over year. Rigetti topped estimates in each of the trailing four quarters, with an average surprise of 29.17%.
For D-Wave, investors will watch bookings conversion, remaining performance obligations, enterprise demand and progress after its Quantum Circuits acquisition. The company is advancing its gate-model roadmap while commercializing its annealing systems, with blockchain and AI-related customer deployments expected to contribute to second-quarter revenue.
For Rigetti, the focus is on revenue recognition from Novera system deliveries, customer traction for its 108-qubit Cepheus platform, cloud usage and execution against its technology roadmap. Rigetti ended March with $569 million in cash and investments and no debt, with first-quarter operating cash burn of $16.2 million.
Both companies continue to invest heavily in research and development, sales expansion and commercialization, keeping near-term profitability under pressure despite improving business fundamentals.
The Zacks model does not conclusively predict an earnings beat for either company. D-Wave carries an Earnings ESP of 0.00% with a Zacks Rank #2 (Buy), while Rigetti has an Earnings ESP of 0.00% with a Zacks Rank #3 (Hold).
D-Wave's Zacks Rank reflects a stronger fundamental outlook, while Rigetti's suggests investors may wait for further evidence of sustained execution after its recent rally. Both reports land Aug. 6 after market close, with management commentary on second-half revenue visibility the key swing factor for the quantum sector.
This article is for informational purposes only and does not constitute investment advice.
