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What to Expect for Applied Therapeutics (APLT) Q2 Earnings

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On second-quarter 2020 earnings call, we expect investors to focus on Applied Therapeutics, Inc.’s (APLT - Free Report) pipeline of novel drug candidates against validated molecular targeting areas of high unmet medical need.

Applied Therapeutics depicts a dismal earnings surprise history, lagging expectations in three of the trailing four quarters while beating estimates just once, the average miss being 63.00%. In the last reported quarter, the company delivered a surprise of 21.33%.

Shares of Applied Therapeutics have lost 6% year to date against the industry’s rally of 9.8%.


Let’s see, how things are shaping up for the quarter to be reported.

Factors at Play

Applied Therapeutics’ portfolio is currently devoid of any approved product. As a result, the company is yet to generate any revenues from product sales.

The company was developing AT-007, a novel central nervous system penetrant aldose reductase inhibitor (ARI) for the treatment of Galactosemia, a rare pediatric metabolic disease. In April, the company announced full-study data, which showed that once-daily AT-007 (20mg/kg) rapidly and sustainably reduced toxic galactitol levels with no accompanying increase in galactose. Earlier in January 2020, it announced positive top-line results from the mid-stage study in adult galactosemia patients treated with AT-007.

Notably, in June, the company initiated a pediatric study, namely ACTION-Galactosemia Kids, for treating Galactosemia, in children aged between two and 17 years. The study and all the developmental activities related to AT-007 are likely to have elevated the company’s operating expense in the to-be-reported quarter. In April, the FDA granted a Pediatric Rare Disease designation to AT-007 for the treatment of galactosemia..

Further, Applied Therapeutics is developing AT-001, a novel ARI, in a phase III registrational study for the treatment of diabetic cardiomyopathy, a fatal fibrosis of the heart. Also, in April, the company announced that a COVID-19 investigational new drug (IND) has been opened with the FDA for AT-001. Investors will be keen to get an update on the same during the upcoming conference call.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Applied Therapeutics this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise. But that is not the case here.

Earnings ESP: Applied Therapeutics has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 72 cents per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: Applied Therapeutics currently sports a Zacks Rank of 1, which increases the predictive power of ESP. However, its 0.00% ESP makes surprise prediction difficult.

Applied Therapeutics Inc. Price and EPS Surprise

Applied Therapeutics Inc. Price and EPS Surprise


Applied Therapeutics Inc. price-eps-surprise
| Applied Therapeutics Inc. Quote

Stocks to Consider

Here are some biotech/drug stocks with the right mix of elements to beat on earnings this time around:

Agenus Inc. (AGEN - Free Report) has an Earnings ESP of +15.85% and a Zacks Rank #2, currently.You can see the complete list of today’s Zacks #1 Rank stocks here.

ACADIA Pharmaceuticals Inc. (ACAD - Free Report) has an Earnings ESP of +8.12% and a Zacks Rank of 3 at present. The company is scheduled to release earnings results on Aug 5.

Translate Bio, Inc. (TBIO - Free Report) has an Earnings ESP of +7.69% and a Zacks Rank of 2, currently.

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