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Cubist Pharmaceuticals Inc. (CBST - Analyst Report) is scheduled to release its second quarter 2013 results after the closing bell on Thursday, Jul 18.

In the last quarter, Cubist Pharma delivered a positive earnings surprise of 3.03% driven by strong sales of antibiotic injection, Cubicin (daptomycin). Cubicin accounted for the bulk of the revenues reported in the first quarter of 2013. This biopharmaceutical company has delivered positive earnings surprises in three of the last four quarters with an average beat of 23.90%. Let’s see how things are shaping up prior to the announcement of the second quarter results.

Factors to Consider this Quarter

We expect Cubicin to continue performing well, thereby driving growth at Cubist Pharma in the second quarter of 2013. Apart from Cubicin’s performance, focus is also expected to be on the company’s update on its pipeline. Important phase III candidates at Cubist Pharma include ceftolozane/tazobactam (formerly CXA-201), Surotomycin (CB-315) and Bevenopran (CB-5945).

Earnings Whispers

Our proven model does not conclusively show that Cubist Pharma is likely to beat the Zacks Consensus Estimate in the second quarter. That is because a stock needs to have both a positive Earnings ESP (Expected Surprise Prediction) and a Zacks Rank #1 (Strong Buy) or at least Zacks Rank #2 (Buy) or Zacks Rank #3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.

Negative Zacks ESP:  This is because the Most Accurate estimate stands at 44 cents while the Zacks Consensus Estimate is higher at 54 cents. This results in a difference of -14.82%
Zacks Rank #3 (Hold): Cubist Pharma’s Zacks Rank of 3, however, increases the predictive power of ESP. That said we also need to have a positive ESP to be confident for an earnings surprise call.  

Other Stocks to Consider

Here are some other companies you may want to consider on the basis of our model , which shows that they have the right combination of elements to post an earnings beat this quarter:

Eli Lilly and Company (LLY - Analyst Report) has Earnings ESP of +1.98% and holds a Zacks Rank #3 (Hold). Eli Lilly will be reporting second quarter earnings on Jul 24 before the market opens.

Biogen Idec. (BIIB - Analyst Report) has Earnings ESP of +3.89% and holds a Zacks Rank #3 (Hold). Biogen will be reporting second quarter earnings on Jul 25 before the market opens.

Abbott Laboratories (ABT - Analyst Report) has Earnings ESP of +2.27% and holds a Zacks Rank #3 (Hold). Abbott will be reporting second quarter earnings on Jul 17 before the market opens.

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