T2 Biosystems (NASDAQ: TTOO) stock price will be in the spotlight on Thursday as the company publishes its financial results. The shares jumped to a high of $0.3090, a few points above this month’s low of $0.1500. In all, the stock has jumped by more than 520% from the lowest point this year.

T2 Biosystems, the highly popular penny stock, will be in focus as it publishes its results after the market closes. Analysts believe that its loss-making streak continued in Q3 as challenges in the business remain.

Precisely, analysts expect that the company’s revenue dropped by another 29% YoY in Q3 to $2.6 million. The consensus earnings per share (EPS) estimate is that it will be -$0.04. T2 Biosystems has a good track record of beating the analysts’ estimate.

T2 Biosystems revenue in Q2 crashed by 66% to $1.9 million while its EPS dropped to -$0.08. Its net loss was $6.3 million. The management will likely discuss about sepsis, its main area of focus, and one of the biggest killers in the US. 

For starters, T2 Biosystems is the only company with an FDA-cleared product for detecting sepsis-causing pathogens directly from blood in less than five hours. The company’s strategy is to accelerate sales in the US and other countries, especially in Europe.

Therefore, these results will provide more information about whether the company’s strategy is working. Also, the company will provide more information about the upcoming launch of T2Resistance panel in 2024. 

There is a big red flag though. As I have noted before. Public disclosures show that the company’s biggest shareholder has been dumping stock recently.  

It is always difficult to conduct a forecast for a penny stock ahead of earnings since anything can happen. What is clear is that the company will go through elevated volatility in extended hours. 

In T2 Biosystems case, the daily chart shows that the stock is forming what seems like a double-bottom pattern whose neckline is at $0.6958, which is about 127% above the current level. 

A look at TTOO stock volume shows that it has been falling recently. Therefore, while it is too early to tell, there is a likelihood that the stock will pop after earnings. The alternative scenario is where it drops to $0.060, the lowest point this year.

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