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Inovio (INO): What's in the Cards this Earnings Season?
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Inovio Pharmaceuticals, Inc. (INO - Free Report) is expected to report fourth-quarter 2016 results this month. The company incurred wider-than-expected loss in the last quarter.
In the last one year, Inovio’s shares have underperformed the Zacks classified Medical-Biomed/Genetics industry. Specifically, the company’s stock lost 8.1% during the period, while the industry recorded a decrease of 2.6%.
Inovio’s performance has been mixed so far. The company beat expectations in one of the last four quarters, posted in-line results in one and missed estimates in the other quarter. The average positive earnings surprise for the last four quarters is 3.23%.
Inovio Pharmaceuticals, Inc. Price and EPS Surprise
Let’s see how things are shaping up for this announcement.
Factors to Consider
Given that Inovio does not have any revenue-generating product in its portfolio yet, investor focus will remain on pipeline and regulatory updates.
VGX-3100 is the most advanced candidate in the company’s pipeline. In Oct 2016, Inovio suffered a setback with the FDA placing a clinical hold on its late-stage program for VGX-3100. The company was looking to move VGX-3100 into phase III development in the fourth quarter. However, with the clinical hold in place, it now expects the program to be delayed until the first half of 2017, pending resolution of the FDA’s requests.
At the third-quarter earnings update, Inovio had said that it is looking to evaluate VGX-3100 for the treatment of HPV-16/18-related high grade cervical dysplasia. The FDA has asked the company to provide additional data to support the shelf-life of the newly designed and manufactured disposable parts of the Cellectra 5PSP immunotherapy delivery device.
Apart from VGX-3100, Inovio has several other candidates in its pipeline in early- to mid-stage development. Meanwhile, the company is working on the development of Ebola, Zika and Middle East respiratory syndrome virus vaccines. In August, Inovio announced that it has initiated the second study on Zika vaccine, GLS-5700, in Puerto Rico. In Dec 2016, the company announced positive results from the study which demonstrated Zika antigen-specific antibody responses after one or two vaccinations. The vaccine was well tolerated with no significant safety concerns noted at week 14. This will allow Inovio to meet regulators in 2017 to determine the path forward for the Zika vaccine.
Inovio has collaborations with several companies and institutes for the development of its pipeline candidates. With no approved product in its portfolio, Inovio depends largely on collaborations, grants and other payments for revenues as well as for the development of its pipeline candidates. Therefore, the top line of the company varies on a quarterly basis depending on the timing of such events.
Investor focus should remain on pipeline updates as many such events are lined up along with the company’s plans related to the development of its Ebola and Zika vaccines.
Earnings Whispers
Our proven model does not conclusively show that Inovio is likely to beat the Zacks Consensus Estimate this quarter. 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) for this to happen. That is not the case here, as you will see below.
Zacks ESP: The Earnings ESP is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 29 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Inovio’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings beat.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are a couple of health care stocks that you may want to consider, as our model shows that this have the right combination of elements to post an earnings beat in the upcoming quarter.
BioMarin Pharmaceutical Inc. (BMRN - Free Report) has an Earnings ESP of +3.13% and a Zacks Rank #3.
Biogen Inc. (BIIB - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #3.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
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Inovio (INO): What's in the Cards this Earnings Season?
Inovio Pharmaceuticals, Inc. (INO - Free Report) is expected to report fourth-quarter 2016 results this month. The company incurred wider-than-expected loss in the last quarter.
In the last one year, Inovio’s shares have underperformed the Zacks classified Medical-Biomed/Genetics industry. Specifically, the company’s stock lost 8.1% during the period, while the industry recorded a decrease of 2.6%.
Inovio’s performance has been mixed so far. The company beat expectations in one of the last four quarters, posted in-line results in one and missed estimates in the other quarter. The average positive earnings surprise for the last four quarters is 3.23%.
Inovio Pharmaceuticals, Inc. Price and EPS Surprise
Inovio Pharmaceuticals, Inc. Price and EPS Surprise | Inovio Pharmaceuticals, Inc. Quote
Let’s see how things are shaping up for this announcement.
Factors to Consider
Given that Inovio does not have any revenue-generating product in its portfolio yet, investor focus will remain on pipeline and regulatory updates.
VGX-3100 is the most advanced candidate in the company’s pipeline. In Oct 2016, Inovio suffered a setback with the FDA placing a clinical hold on its late-stage program for VGX-3100. The company was looking to move VGX-3100 into phase III development in the fourth quarter. However, with the clinical hold in place, it now expects the program to be delayed until the first half of 2017, pending resolution of the FDA’s requests.
At the third-quarter earnings update, Inovio had said that it is looking to evaluate VGX-3100 for the treatment of HPV-16/18-related high grade cervical dysplasia. The FDA has asked the company to provide additional data to support the shelf-life of the newly designed and manufactured disposable parts of the Cellectra 5PSP immunotherapy delivery device.
Apart from VGX-3100, Inovio has several other candidates in its pipeline in early- to mid-stage development. Meanwhile, the company is working on the development of Ebola, Zika and Middle East respiratory syndrome virus vaccines. In August, Inovio announced that it has initiated the second study on Zika vaccine, GLS-5700, in Puerto Rico. In Dec 2016, the company announced positive results from the study which demonstrated Zika antigen-specific antibody responses after one or two vaccinations. The vaccine was well tolerated with no significant safety concerns noted at week 14. This will allow Inovio to meet regulators in 2017 to determine the path forward for the Zika vaccine.
Inovio has collaborations with several companies and institutes for the development of its pipeline candidates. With no approved product in its portfolio, Inovio depends largely on collaborations, grants and other payments for revenues as well as for the development of its pipeline candidates. Therefore, the top line of the company varies on a quarterly basis depending on the timing of such events.
Investor focus should remain on pipeline updates as many such events are lined up along with the company’s plans related to the development of its Ebola and Zika vaccines.
Earnings Whispers
Our proven model does not conclusively show that Inovio is likely to beat the Zacks Consensus Estimate this quarter. 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) for this to happen. That is not the case here, as you will see below.
Zacks ESP: The Earnings ESP is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 29 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Inovio’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings beat.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are a couple of health care stocks that you may want to consider, as our model shows that this have the right combination of elements to post an earnings beat in the upcoming quarter.
AbbVie Inc. (ABBV - Free Report) has an Earnings ESP of +0.79% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
BioMarin Pharmaceutical Inc. (BMRN - Free Report) has an Earnings ESP of +3.13% and a Zacks Rank #3.
Biogen Inc. (BIIB - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #3.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>