Back to top

Image: Bigstock

What to Expect from Epizyme (EPZM) This Earnings Season?

Read MoreHide Full Article

Epizyme, Inc. is scheduled to report first-quarter 2017 results on May 8, before the opening bell. Last quarter, the company recorded a positive earnings surprise of 6.25%.

In fact, Epizyme’s track record has been strong, with the company surpassing expectations in all of the four trailing quarters, with average positive surprise of 11.96%.

Epizyme’s share price has outperformed the Zacks classified Medical-Biomedical/Genetics industry year to date. The stock was up 43.0% during this time period compared with the industry’s gain of 5.2%.

Let’s see how things are shaping up for this quarter.

Factors Influencing This Quarter

Epizyme is a development-stage company with no approved products in its portfolio. Its top line comprises revenues earned through collaborations. Hence, investor focus is expected to remain on the company’s pipeline updates.

Epizyme’s lead candidate, tazemetostat (an EZH2 inhibitor), is being evaluated for relapsed or refractory non-Hodgkin lymphoma (NHL) and advanced solid tumors.

Currently, the company is evaluating tazemetostat in a phase II study in adults with relapsed or refractory NHL, a phase II study in adults with certain genetically defined solid tumor (INI1-negative tumors, SMARCA4-negative tumors or synovial sarcomas). In Jan 2017, Epizyme opened enrollment to patients with follicular lymphoma in the U.S. as part of its phase II study in NHL as per the FDA’s request.  Also, it intends to meet with the FDA, in the second half of 2017and discuss the NHL program, with the goal of defining its registration pathways in various subtypes.

Additionally, Epizyme is exploring tazemetostat to increase the clinical activity of immuno-oncology therapies by combining it with an anti-PD 1 or PDL-1 agent. Under its collaboration with Roche Holding AG (RHHBY - Free Report) , the company is evaluating tazemetostat, in combination with anti-PD-L1 cancer immunotherapy, Tecentriq, for the treatment of patients with relapsed or refractory DLBCL to determine the recommended phase II dose and advance into the expansion portion of the study.

The company’s another experimental candidate, pinometostat, an inhibitor of the DOT1L HMT is currently in a phase I study for the treatment of children with MLL gene (MLL-r).

Epizyme expects that its cash balance of $242.2 million as of Dec 31, 2016 to be used to fund its planned operations through at least the third quarter of 2018.

Earnings Whispers

Our proven model does not conclusively show that Epizyme is likely to beat estimates 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: Earnings ESP for Epizyme is -1.59. This is because the Most Accurate estimate is  at a loss of 64 cents, while the Zacks Consensus Estimate is pegged at a loss of 63 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Though Epizyme has a Zacks Rank #3, a negative ESP makes surprise prediction difficult.

Note that 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.

Epizyme, Inc. Price and EPS Surprise

 

Epizyme, Inc. Price and EPS Surprise | Epizyme, Inc. Quote

Stocks That Warrant a Look

Here are some companies to consider as our model shows that they have the right combination of elements to post an earnings beat in the upcoming quarter:

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. You can see the complete list of today’s Zacks #1 Rank stocks here.

Editas Medicine, Inc. (EDIT - Free Report) has an Earnings ESP of +32.26% and a Zacks Rank #3. The company is expected to release results on May 15.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think. See This Ticker Free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Roche Holding AG (RHHBY) - free report >>

FibroGen, Inc (FGEN) - free report >>

Editas Medicine, Inc. (EDIT) - free report >>

Published in