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What's in the Cards for Merrimack (MACK) in Q1 Earnings?
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Merrimack Pharmaceuticals, Inc. (MACK - Free Report) is expected to report first-quarter 2017 results around May 1. Last quarter, Merrimack missed bottom line expectations by 13.64%.
Merrimack’s share price decreased 18.4% year to date against the Zacks classified Medical - Biomedical and Genetics industry’s gain of 4.7%.
Let’s see how things are shaping up for the company this quarter.
Factors to Consider
The first quarter of 2017 was the last quarter in which Merrimack recorded Onivyde sales. Onivyde’s launch was disappointing and sales of the drug have not been very impressive. The company was struggling to market the drug properly. We do not expect any improving trend in the to-be-reported quarter.
Merrimack sold its only marketed product Onivyde and generic version of Doxil to Ipsen S.A. (IPSEY - Free Report) . The deal closed in Apr 2017. Now with no approved or marketed drugs in its portfolio, investors will focus on pipeline development at the company’s first quarter conference call.
Merrimack plans to use a part of the proceeds from its assets sale and focus its resources on the development of its three pipeline candidates – MM-121/seribantumab (heregulin-positive, locally advanced or metastatic non-small cell lung cancer (NSCLC), MM-141/istiratumab (pancreatic cancer) and MM-310 (solid tumor).
The company discontinued its phase II trial on its breast cancer candidate, MM-302 in Dec 2016 on recommendation and futility analysis byan independent Data and Safety Monitoring Board (DSMB).
Surprise History
Merrimack’s track record has been mixed so far with a four-quarter average positive earnings surprise of 1.86%. The company has beaten estimates twice in the four trailing quarters while missing the same on the other two occasions.
What Our Model Indicates
Our proven model does not conclusively show that Merrimack is likely to beat earnings this quarter. This 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 be able to beat expectations. But that is not the case here as you will see below.
Zacks ESP:`The Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. This is because the both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 7 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Merrimack’s Zacks Rank #3 when combined with 0.00% ESP makes surprise prediction difficult.
Note that we caution 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.
Merrimack Pharmaceuticals, Inc. Price and EPS Surprise
Here are some health care stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
Syndax Pharmaceuticals, Inc. (SNDX - Free Report) has an Earnings ESP of +4.05% and a Zacks Rank #3. The company is scheduled to release results on May 15.
FibroGen, Inc. (FGEN - Free Report) has an Earnings ESP of +23.81% and a Zacks Rank #3. The company is expected to release results on May 8.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more.
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What's in the Cards for Merrimack (MACK) in Q1 Earnings?
Merrimack Pharmaceuticals, Inc. (MACK - Free Report) is expected to report first-quarter 2017 results around May 1. Last quarter, Merrimack missed bottom line expectations by 13.64%.
Merrimack’s share price decreased 18.4% year to date against the Zacks classified Medical - Biomedical and Genetics industry’s gain of 4.7%.
Let’s see how things are shaping up for the company this quarter.
Factors to Consider
The first quarter of 2017 was the last quarter in which Merrimack recorded Onivyde sales. Onivyde’s launch was disappointing and sales of the drug have not been very impressive. The company was struggling to market the drug properly. We do not expect any improving trend in the to-be-reported quarter.
Merrimack sold its only marketed product Onivyde and generic version of Doxil to Ipsen S.A. (IPSEY - Free Report) . The deal closed in Apr 2017. Now with no approved or marketed drugs in its portfolio, investors will focus on pipeline development at the company’s first quarter conference call.
Merrimack plans to use a part of the proceeds from its assets sale and focus its resources on the development of its three pipeline candidates – MM-121/seribantumab (heregulin-positive, locally advanced or metastatic non-small cell lung cancer (NSCLC), MM-141/istiratumab (pancreatic cancer) and MM-310 (solid tumor).
The company discontinued its phase II trial on its breast cancer candidate, MM-302 in Dec 2016 on recommendation and futility analysis byan independent Data and Safety Monitoring Board (DSMB).
Surprise History
Merrimack’s track record has been mixed so far with a four-quarter average positive earnings surprise of 1.86%. The company has beaten estimates twice in the four trailing quarters while missing the same on the other two occasions.
What Our Model Indicates
Our proven model does not conclusively show that Merrimack is likely to beat earnings this quarter. This 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 be able to beat expectations. But that is not the case here as you will see below.
Zacks ESP:`The Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. This is because the both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 7 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Merrimack’s Zacks Rank #3 when combined with 0.00% ESP makes surprise prediction difficult.
Note that we caution 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.
Merrimack Pharmaceuticals, Inc. Price and EPS Surprise
Merrimack Pharmaceuticals, Inc. Price and EPS Surprise | Merrimack Pharmaceuticals, Inc. Quote
Stocks to Consider
Here are some health care stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
Aurinia Pharmaceuticals Inc. has an Earnings ESP of +10.00% and a Zacks Rank #3. The company is expected to release results on May 10. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Syndax Pharmaceuticals, Inc. (SNDX - Free Report) has an Earnings ESP of +4.05% and a Zacks Rank #3. The company is scheduled to release results on May 15.
FibroGen, Inc. (FGEN - Free Report) has an Earnings ESP of +23.81% and a Zacks Rank #3. The company is expected to release results on May 8.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more.
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