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What's in the Cards for Geron (GERN) This Earnings Season?
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Geron Corporation (GERN - Free Report) is scheduled to report third-quarter 2018 results on Nov 1, after market close.
In the last reported quarter, the company’s earnings came in line with expectations. Geron’s performance in the last four quarters was mixed, with the company delivering an average negative surprise of 1.67%.
Geron’s shares have decreased 15.6% so far this year compared with the industry’s decline of 19.8%.
Pipeline in Focus
Geron’s revenues solely comprise license fees and royalties as it has no approved product in its portfolio. Moreover, it has only one candidate in its pipeline, imetelstat. Hence, investor focus will remain on any updates related to it.
In September, Geron suffered a major setback as Johnson & Johnson (JNJ - Free Report) decided to discontinue the collaboration agreement to develop imetelstat. With the termination of the agreement, Geron lost a strong and experienced partner as well as its major source of funds.
Following J&J’s decision, Geron regained global development rights to imetelstat and has decided to continue developing the candidate independently.
The companies were developing imetelstat in two clinical studies – phase II IMbark and phase II/III IMerge – evaluating it in myelofibrosis and myelodysplastic syndromes (“MDS”), respectively.
Geron remains confident about the potential of imetelstat in MDS indication based on supportive data from initial and expansion arms of phase II portion of IMerge study. The company expects to initiate the phase III portion of the IMerge study in mid-2019.
A decision on IMbark study will be taken after further analysis and discussion with experts.
Following the termination of collaboration with J&J, the company has raised its operating expense guidance for 2018 suggesting a significant rise in the third quarter. The company anticipates its cash resources of $183 million as of August end to be enough to initiate the phase III study in MDS. However, there is no guidance related to funding required for continuation of the study.
We expect the company to provide an update on the path forward for imetelstat development on the third-quarter conference call.
Earnings Whispers
Our proven model does not conclusively show that Geron is likely to beat 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) to be able to beat estimates. But that is not the case here, as you will see below.
Earnings ESP: Geron’s Earnings ESP is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at a loss of 5 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Geron has a Zacks Rank #4 (Sell).
Note that we caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Here are some biotech 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.
Compugen Ltd. (CGEN - Free Report) has an Earnings ESP of +58.33% and a Zacks Rank #2. The company is scheduled to release third-quarter results on Nov 7.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
What's in the Cards for Geron (GERN) This Earnings Season?
Geron Corporation (GERN - Free Report) is scheduled to report third-quarter 2018 results on Nov 1, after market close.
In the last reported quarter, the company’s earnings came in line with expectations. Geron’s performance in the last four quarters was mixed, with the company delivering an average negative surprise of 1.67%.
Geron’s shares have decreased 15.6% so far this year compared with the industry’s decline of 19.8%.
Pipeline in Focus
Geron’s revenues solely comprise license fees and royalties as it has no approved product in its portfolio. Moreover, it has only one candidate in its pipeline, imetelstat. Hence, investor focus will remain on any updates related to it.
In September, Geron suffered a major setback as Johnson & Johnson (JNJ - Free Report) decided to discontinue the collaboration agreement to develop imetelstat. With the termination of the agreement, Geron lost a strong and experienced partner as well as its major source of funds.
Following J&J’s decision, Geron regained global development rights to imetelstat and has decided to continue developing the candidate independently.
The companies were developing imetelstat in two clinical studies – phase II IMbark and phase II/III IMerge – evaluating it in myelofibrosis and myelodysplastic syndromes (“MDS”), respectively.
Geron remains confident about the potential of imetelstat in MDS indication based on supportive data from initial and expansion arms of phase II portion of IMerge study. The company expects to initiate the phase III portion of the IMerge study in mid-2019.
A decision on IMbark study will be taken after further analysis and discussion with experts.
Following the termination of collaboration with J&J, the company has raised its operating expense guidance for 2018 suggesting a significant rise in the third quarter. The company anticipates its cash resources of $183 million as of August end to be enough to initiate the phase III study in MDS. However, there is no guidance related to funding required for continuation of the study.
We expect the company to provide an update on the path forward for imetelstat development on the third-quarter conference call.
Earnings Whispers
Our proven model does not conclusively show that Geron is likely to beat 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) to be able to beat estimates. But that is not the case here, as you will see below.
Earnings ESP: Geron’s Earnings ESP is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at a loss of 5 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Geron has a Zacks Rank #4 (Sell).
Note that we caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Geron Corporation Price and EPS Surprise
Geron Corporation Price and EPS Surprise | Geron Corporation Quote
Stocks That Warrant a Look
Here are some biotech 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.
Emergent Biosolutions Inc. (EBS - Free Report) has an Earnings ESP of +16.76% and a Zacks Rank #2. The company is scheduled to release third-quarter results on Nov 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Compugen Ltd. (CGEN - Free Report) has an Earnings ESP of +58.33% and a Zacks Rank #2. The company is scheduled to release third-quarter results on Nov 7.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>