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What's in Store for Juno Therapeutics (JUNO) in Q1 Earnings?
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Juno Therapeutics Inc. is scheduled to report first-quarter 2017 results on May 4, after the market closes. Last quarter, the company posted a negative earnings surprise of 4.76%.
Year to date, Juno’s shares gained 32.3% while the Zacks classified Medical-Biomed/Genetics industry recorded an increase of 4.9%.
So far, it has had a poor track record with negative surprises three of the last four quarters. Earnings met estimates only once. The average negative earnings surprise for the last four quarters is 10.19%.
With no approved products in its portfolio, Juno does not generate any product revenue yet. Thus, investor focus will primarily be on the company’s cash burn and pipeline updates.
Juno is looking to revolutionize cancer treatments by engaging the body’s immune system to fight cancer. To that end, the company is developing cell-based cancer immunotherapies based on CAR and high-affinity TCR technologies. This is a hot therapeutic area with huge commercial potential. Presently, the company’s most advanced pipeline candidates include JCAR017 and JCAR014, which use CAR T-cell technology to target CD19. JCAR017 is in a phase I study for non-Hodgkin lymphoma (NHL) and in a phase I/II study in pediatric and young adults with r/r ALL.
in Dec 2016, Juno Therapeutics and partner Celgene Corp. announced that the FDA has granted Breakthrough Therapy designation to JCAR017, for the treatment of relapsed/refractory (r/r) aggressive large B-cell non-Hodgkin lymphoma (NHL), including diffuse large B-cell lymphoma (DLBCL) and Primary Mediastinal B-cell Lymphoma (PMBCL). Further, the candidate was granted Priority Medicines (PRIME) eligibility for r/r DLBCL by the European Medicines Agency (EMA).
In Dec 2016, Juno presented encouraging early data for another candidate, JCAR014, in patients with chronic lymphocytic leukemia (CLL), who failed treatment with ibrutinib. Insights from studies of JCAR014 are being applied to the development of JCAR017 for the treatment of B-cell malignancies.
However, the company faced a major setback related to the development of its lead pipeline candidate, JCAR015. In Nov 2016, Juno announced that it is discontinuing the development of JCAR015 for r/r ALL and voluntarily placed the study on hold in Nov 2016 after it received a CRL in Jul 2016.
We note that at the time of releasing its fourth-quarter results, Juno had revealed its expectations of cash burn of $270–$300 million in 2017.
Earnings Whispers
Our proven model does not conclusively show that Juno is likely to beat earnings estimates 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) for this to happen. This 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 both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 66 cents.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Though Juno’s Zacks Rank #2 (Buy) increases the predictive power of the ESP, its 0.00% Earnings 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.
Stocks That Warrant a Look
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.
Ultragenyx Pharmaceutical Inc. (RARE - Free Report) is expected to release results on May 8. The company has an Earnings ESP of +0.59% and a Zacks Rank #3.
Sell These Stocks Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>.
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What's in Store for Juno Therapeutics (JUNO) in Q1 Earnings?
Juno Therapeutics Inc. is scheduled to report first-quarter 2017 results on May 4, after the market closes. Last quarter, the company posted a negative earnings surprise of 4.76%.
Year to date, Juno’s shares gained 32.3% while the Zacks classified Medical-Biomed/Genetics industry recorded an increase of 4.9%.
So far, it has had a poor track record with negative surprises three of the last four quarters. Earnings met estimates only once. The average negative earnings surprise for the last four quarters is 10.19%.
Juno Therapeutics, Inc. Price and EPS Surprise
Juno Therapeutics, Inc. Price and EPS Surprise | Juno Therapeutics, Inc. Quote
Factors at Play
With no approved products in its portfolio, Juno does not generate any product revenue yet. Thus, investor focus will primarily be on the company’s cash burn and pipeline updates.
Juno is looking to revolutionize cancer treatments by engaging the body’s immune system to fight cancer. To that end, the company is developing cell-based cancer immunotherapies based on CAR and high-affinity TCR technologies. This is a hot therapeutic area with huge commercial potential. Presently, the company’s most advanced pipeline candidates include JCAR017 and JCAR014, which use CAR T-cell technology to target CD19. JCAR017 is in a phase I study for non-Hodgkin lymphoma (NHL) and in a phase I/II study in pediatric and young adults with r/r ALL.
in Dec 2016, Juno Therapeutics and partner Celgene Corp. announced that the FDA has granted Breakthrough Therapy designation to JCAR017, for the treatment of relapsed/refractory (r/r) aggressive large B-cell non-Hodgkin lymphoma (NHL), including diffuse large B-cell lymphoma (DLBCL) and Primary Mediastinal B-cell Lymphoma (PMBCL). Further, the candidate was granted Priority Medicines (PRIME) eligibility for r/r DLBCL by the European Medicines Agency (EMA).
In Dec 2016, Juno presented encouraging early data for another candidate, JCAR014, in patients with chronic lymphocytic leukemia (CLL), who failed treatment with ibrutinib. Insights from studies of JCAR014 are being applied to the development of JCAR017 for the treatment of B-cell malignancies.
However, the company faced a major setback related to the development of its lead pipeline candidate, JCAR015. In Nov 2016, Juno announced that it is discontinuing the development of JCAR015 for r/r ALL and voluntarily placed the study on hold in Nov 2016 after it received a CRL in Jul 2016.
We note that at the time of releasing its fourth-quarter results, Juno had revealed its expectations of cash burn of $270–$300 million in 2017.
Earnings Whispers
Our proven model does not conclusively show that Juno is likely to beat earnings estimates 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) for this to happen. This 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 both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 66 cents.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Though Juno’s Zacks Rank #2 (Buy) increases the predictive power of the ESP, its 0.00% Earnings 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.
Stocks That Warrant a Look
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.
Proteostasis Therapeutics, Inc. , which is expected to release results on May 12, has an Earnings ESP of +5.17% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ultragenyx Pharmaceutical Inc. (RARE - Free Report) is expected to release results on May 8. The company has an Earnings ESP of +0.59% and a Zacks Rank #3.
Sell These Stocks Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>.