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Vanda (VNDA) Q4 Earnings: What's in Store for the Stock
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Vanda Pharmaceuticals Inc. (VNDA - Free Report) is scheduled to report fourth-quarter 2018 and full-year earnings results on Feb 13, 2019, after the market closes.
The company’s track record has been impressive so far, having delivered a positive surprise in each of the trailing four reported quarters, the average being 736.67%. In the last reported quarter, Vanda came up with an earnings surprise of 1900%.
Shares of Vanda have surged 31.1% in the past year against the industry’s decrease of 13.9%.
Let’s see how things are shaping up for this quarter to be reported.
Factors to Consider
Vanda’s top line consists of sales from its two marketed products, namely Hetlioz and Fanapt. Sales of Hetlioz increased both year over year and sequentially in the third quarter. We expect this positive trend to continue in the fourth quarter as well. However, sales of the other drug, Fanapt, have been sluggish. Therefore, we do not expect an improvement in the fourth quarter.
Hetlioz, a melatonin receptor agonist, approved for the treatment of Non-24-Hour Sleep-Wake Disorder (Non-24) since 2014, is currently being evaluated for the treatment of jet lag disorder, Smith-Magenis Syndrome (SMS), and Pediatric Non-24.
Last December, Vanda announced positive results from a pivotal study, which evaluated Hetlioz for treating patients suffering SMS. Data from this placebo-controlled program showed that Hetlioz significantly improved sleep quality and increased sleep duration in the given patient population. The study met the primary endpoint of sleep improvement.
Also, in the same month, Vanda announced that the FDA has accepted its supplemental new drug application (sNDA) of Hetlioz for review pertaining to the treatment of jet lag disorder. The regulatory agency has set an action date of Aug 16, 2019.
Fanapt, an oral formulation, is approved addressing schizophrenia. The drug was launched by Novartis (NVS - Free Report) in the United States. However, in late 2014, Novartis transferred all the United States and Canadian commercial rights to Fanapt to Vanda. Fanapt is currently being assessed for new clinical opportunities. We expect management to provide an update on the pipeline program for Fanapt during the upcoming conference call.
Apart from these two marketed products, Tradipitant (VLY-686) — a small molecule neurokinin-1 receptor (NK-1R) antagonist — is currently being developed for chronic pruritus in atopic dermatitis and gastroparesis.
Last December, Vanda announced favorable results from a phase II investigation, which examined tradipitant for treating patients with idiopathic and diabetic gastroparesis. The study met the primary endpoint of change in nausea score, measured by patients’ daily diaries. We expect investors’ focus to be on the updates surrounding this promising candidate during the earnings call.
Earnings Whispers
Our proven model does not conclusively show that Vanda is likely to beat on earnings this season. This is because the 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: Vanda has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 13 cents each. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Vanda carries a Zacks Rank #2, which increases the predictive power of ESP. However, its 0.00% ESP makes surprise prediction difficult.
We caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Here are a few health care stocks that you may want to consider as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
BioDelivery Sciences International, Inc. has an Earnings ESP of +38.46% and a Zacks Rank of 1.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
Image: Bigstock
Vanda (VNDA) Q4 Earnings: What's in Store for the Stock
Vanda Pharmaceuticals Inc. (VNDA - Free Report) is scheduled to report fourth-quarter 2018 and full-year earnings results on Feb 13, 2019, after the market closes.
The company’s track record has been impressive so far, having delivered a positive surprise in each of the trailing four reported quarters, the average being 736.67%. In the last reported quarter, Vanda came up with an earnings surprise of 1900%.
Shares of Vanda have surged 31.1% in the past year against the industry’s decrease of 13.9%.
Let’s see how things are shaping up for this quarter to be reported.
Factors to Consider
Vanda’s top line consists of sales from its two marketed products, namely Hetlioz and Fanapt. Sales of Hetlioz increased both year over year and sequentially in the third quarter. We expect this positive trend to continue in the fourth quarter as well. However, sales of the other drug, Fanapt, have been sluggish. Therefore, we do not expect an improvement in the fourth quarter.
Hetlioz, a melatonin receptor agonist, approved for the treatment of Non-24-Hour Sleep-Wake Disorder (Non-24) since 2014, is currently being evaluated for the treatment of jet lag disorder, Smith-Magenis Syndrome (SMS), and Pediatric Non-24.
Last December, Vanda announced positive results from a pivotal study, which evaluated Hetlioz for treating patients suffering SMS. Data from this placebo-controlled program showed that Hetlioz significantly improved sleep quality and increased sleep duration in the given patient population. The study met the primary endpoint of sleep improvement.
Also, in the same month, Vanda announced that the FDA has accepted its supplemental new drug application (sNDA) of Hetlioz for review pertaining to the treatment of jet lag disorder. The regulatory agency has set an action date of Aug 16, 2019.
Fanapt, an oral formulation, is approved addressing schizophrenia. The drug was launched by Novartis (NVS - Free Report) in the United States. However, in late 2014, Novartis transferred all the United States and Canadian commercial rights to Fanapt to Vanda. Fanapt is currently being assessed for new clinical opportunities. We expect management to provide an update on the pipeline program for Fanapt during the upcoming conference call.
Apart from these two marketed products, Tradipitant (VLY-686) — a small molecule neurokinin-1 receptor (NK-1R) antagonist — is currently being developed for chronic pruritus in atopic dermatitis and gastroparesis.
Last December, Vanda announced favorable results from a phase II investigation, which examined tradipitant for treating patients with idiopathic and diabetic gastroparesis. The study met the primary endpoint of change in nausea score, measured by patients’ daily diaries. We expect investors’ focus to be on the updates surrounding this promising candidate during the earnings call.
Earnings Whispers
Our proven model does not conclusively show that Vanda is likely to beat on earnings this season. This is because the 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: Vanda has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 13 cents each. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Vanda carries a Zacks Rank #2, which increases the predictive power of ESP. However, its 0.00% ESP makes surprise prediction difficult.
We caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Vanda Pharmaceuticals Inc. Price and EPS Surprise
Vanda Pharmaceuticals Inc. Price and EPS Surprise | Vanda Pharmaceuticals Inc. Quote
Stocks That Warrant a Look
Here are a few health care stocks that you may want to consider as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Aduro Biotech, Inc. has a Zacks Rank of 2 and an Earnings ESP of +15.23%. You can see the complete list of today’s Zacks #1 Rank stocks here.
BioDelivery Sciences International, Inc. has an Earnings ESP of +38.46% and a Zacks Rank of 1.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>