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Exelixis (EXEL) Q4 Earnings: Is Positive Surprise in Store?
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Exelixis, Inc. (EXEL - Free Report) is scheduled to report fourth-quarter 2016 results on Feb 27, after the market close.
Exelixis had a mixed track record over the last four quarters. The company surpassed expectations thrice in the four trailing quarters and missed the same in the remaining, with an average positive earnings surprise of 38.52%.
Exelixis’ share price increased 55.0% year- to -date compared with the Zacks classified Medical - Biomedical and Genetics industry’s gain of 6.5%.
Factors at Play
Exelixis' leading drug Cometriq, the capsule form of cabozantinib, is approved for the treatment of progressive metastatic medullary thyroid cancer (MTC).
The company received a significant boost in Apr 2016, when the FDA approved Cabometyx, a tablet formulation of cabozantinib, for the treatment of patients with advanced renal cell carcinoma (RCC), who have received prior anti-angiogenic therapy. Initial uptake of the drug was encouraging and is expected to propel the top line in the forthcoming quarters.
Additionally, Cabometyx received approval in the EU in September for the treatment of advanced RCC in patients, who have received prior anti-angiogenic therapy. Based on positive results from the phase II CABOSUN study on cabozantinib in Oct 2016, the company has planned to submit a supplemental New Drug Application (sNDA) for cabozantinib for treating first-line advanced advanced RCC. The company also plans to build cabozantinib into an entire oncology franchise.
Exelixis has collaborations with several leading pharmaceuticals such as Bristol-Myers Squibb (BMY - Free Report) , Merck and Daiichi Sankyo Company for various compounds and programs in its portfolio. These collaborations allow Exelixis to earn milestone payments and royalties that boost its top line. Furthermore, the company has an exclusive licensing agreement with Ipsen for the commercialization and further development of cabozantinib.
However, the company expects Cometriq revenues to gradually decline over time as RCC patients come off Cometric therapy and new patients initiate therapy with Cabometyx.
Why a Likely Positive Surprise?
Our proven model shows that Exelixisis likely to beat earnings because it has the right combination of two key ingredients. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. That is not the case here, as you will see below.
Positive Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 200%. Since the Most Accurate stands at 1 cent, while the Zacks Consensus Estimate is pegged at a loss of 1 cent. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Exelixis’ Zacks Rank #2 increases the predictive power of ESP. Moreover,its 200% ESP makes us very confident in looking for a positive earnings beat on Feb 27. You can see the complete list of today’s Zacks #1 Rank stocks here.
Conversely, we caution you against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here are some health care stocks that you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat this quarter.
Pacira Pharmaceuticals, Inc. (PCRX - Free Report) has an Earnings ESP of +20.0% and a Zacks Rank #2.
Exact Sciences Corp. (EXAS - Free Report) has an Earnings ESP of +5.00% and a Zacks Rank #2. The company is scheduled to release results on Feb 21.
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Exelixis (EXEL) Q4 Earnings: Is Positive Surprise in Store?
Exelixis, Inc. (EXEL - Free Report) is scheduled to report fourth-quarter 2016 results on Feb 27, after the market close.
Exelixis had a mixed track record over the last four quarters. The company surpassed expectations thrice in the four trailing quarters and missed the same in the remaining, with an average positive earnings surprise of 38.52%.
Exelixis’ share price increased 55.0% year- to -date compared with the Zacks classified Medical - Biomedical and Genetics industry’s gain of 6.5%.
Factors at Play
Exelixis' leading drug Cometriq, the capsule form of cabozantinib, is approved for the treatment of progressive metastatic medullary thyroid cancer (MTC).
The company received a significant boost in Apr 2016, when the FDA approved Cabometyx, a tablet formulation of cabozantinib, for the treatment of patients with advanced renal cell carcinoma (RCC), who have received prior anti-angiogenic therapy. Initial uptake of the drug was encouraging and is expected to propel the top line in the forthcoming quarters.
Additionally, Cabometyx received approval in the EU in September for the treatment of advanced RCC in patients, who have received prior anti-angiogenic therapy. Based on positive results from the phase II CABOSUN study on cabozantinib in Oct 2016, the company has planned to submit a supplemental New Drug Application (sNDA) for cabozantinib for treating first-line advanced advanced RCC. The company also plans to build cabozantinib into an entire oncology franchise.
Exelixis has collaborations with several leading pharmaceuticals such as Bristol-Myers Squibb (BMY - Free Report) , Merck and Daiichi Sankyo Company for various compounds and programs in its portfolio. These collaborations allow Exelixis to earn milestone payments and royalties that boost its top line. Furthermore, the company has an exclusive licensing agreement with Ipsen for the commercialization and further development of cabozantinib.
However, the company expects Cometriq revenues to gradually decline over time as RCC patients come off Cometric therapy and new patients initiate therapy with Cabometyx.
Why a Likely Positive Surprise?
Our proven model shows that Exelixisis likely to beat earnings because it has the right combination of two key ingredients. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. That is not the case here, as you will see below.
Positive Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 200%. Since the Most Accurate stands at 1 cent, while the Zacks Consensus Estimate is pegged at a loss of 1 cent. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Exelixis’ Zacks Rank #2 increases the predictive power of ESP. Moreover,its 200% ESP makes us very confident in looking for a positive earnings beat on Feb 27. You can see the complete list of today’s Zacks #1 Rank stocks here.
Conversely, we caution you against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Exelixis, Inc. Price and EPS Surprise
Exelixis, Inc. Price and EPS Surprise | Exelixis, Inc. Quote
Stocks to Consider
Here are some health care stocks that you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat this quarter.
Pacira Pharmaceuticals, Inc. (PCRX - Free Report) has an Earnings ESP of +20.0% and a Zacks Rank #2.
Exact Sciences Corp. (EXAS - Free Report) has an Earnings ESP of +5.00% and a Zacks Rank #2. The company is scheduled to release results on Feb 21.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>