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Aytu (AYTU) to Report Q4 Earnings: What's in the Cards?

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Aytu BioScience, Inc. (AYTU - Free Report) will provide corporate and pipeline updates when it reports fourth-quarter fiscal 2020 results.

The company has a mixed earnings surprise history, beating expectations in two of the trailing four quarters and missing in the other two. The average four-quarter negative earnings surprise is 38.35%. In the last reported quarter, the company delivered an earnings surprise of 61.54%.

Shares of Aytu have increased 46% in the year so far compared with the industry’s growth of 6.6%.

Let's see how things are shaping up for this announcement.

Factors to Consider

Aytu reports revenues from two segments — the Rx Business and the Consumer Health Business.

The company recorded highest revenue in the third quarter. Aytu acquired The Innovus Pharmaceuticals in February 2020 to expand its portfolio. The company is likely to have generated significant revenues from this business in the fourth quarter.

In the Rx business, the company expects to see a short-term impact of COVID-19 on its prescription sales. The expected COVID-19 rapid test sales are likely to have more than supplemented its prescription revenues in the fourth quarter.

During the third quarter, the company acquired the distribution rights to COVID-19 rapid test and subsequent to the end of the market quarter began distributing the test in the United States. Following the third quarter, it acquired the distribution rights to a second COVID-19 rapid test from Singapore-based Biolidics. Revenues from these tests are likely to have contributed tothe fourth-quarter performance.

What Our Model Indicates

Our proven model does not conclusively predict an earnings beat for Aytu 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 an earnings beat. But that is not the case here as you will see below.

Earnings ESP: Aytu has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a profit of a cent. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3.

 

Aytu Bioscience, Inc. Price and EPS Surprise

 

Aytu Bioscience, Inc. Price and EPS Surprise

Aytu Bioscience, Inc. price-eps-surprise | Aytu Bioscience, Inc. Quote

Stocks to Consider

Here are some biotech stocks that have the right mix of elements to beat on earnings this time around:

ACADIA Pharmaceuticals Inc. (ACAD - Free Report) has an Earnings ESP of +4.23% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

bluebird bio Inc. (BLUE - Free Report) has an Earnings ESP of +69.18% and a Zacks Rank of 3.

Amarin Corporation Plc. (AMRN - Free Report) has an Earnings ESP of +72.73% and is Zacks #3 Ranked.

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