How does the compensation expense from these grants affect EPS guidance for the upcoming quarters?

Impact on EPS Guidance

The RSU grants to two new hires will generate a non‑cash compensation charge that is recognized in earnings over the vesting periods (typically 3–4 years). For the current fiscal quarter the expense will be spread across the remaining reporting periods, reducing net income and therefore earnings‑per‑share (EPS) on a diluted‑share basis. Given the modest size of the grant—1,875 RSUs on a fully‑diluted share count of roughly 200 million shares—the incremental expense per quarter is modest (on the order of a few thousand dollars). When spread over the 12‑month fiscal calendar, the additional dilution translates to an incremental EPS reduction of roughly $0.0001‑$0.0003 per share (i.e., a few‑hundredths of a cent). Consequently, the company’s EPS guidance for the next 2‑3 quarters should be adjusted downward by a comparable amount, which is generally immaterial to analysts’ consensus expectations.

Trading Implications

Because the EPS impact is negligible, the market is unlikely to react sharply on the news alone; however, the disclosure signals that the company is actively expanding its executive team, which could be viewed positively for future growth. Technical charts for SDGR show the stock hovering near its 50‑day moving average with modest upside momentum. Traders could treat the RSU expense as a neutral catalyst and focus on broader fundamentals—pipeline progress, revenue growth, and cash flow—when evaluating near‑term price moves. If the company’s forthcoming earnings release confirms the modest EPS hit and still delivers EPS in line with prior guidance (adjusted for the new expense), the stock may hold or even rally on the narrative of continued talent acquisition. In short, expect a tiny, negative EPS tweak, but no material change to valuation; monitor the next earnings release for confirmation and use the price‑action around that event for entry/exit decisions.