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Biocept (BIOC) to Report Q2 Earnings: What's in the Cards?

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Biocept, Inc. is slated to report second-quarter 2020 results on Aug 12, after the closing bell. Let's see how things have shaped up prior to the announcement for this molecular diagnostics company with commercialized assays for lung, breast, gastric, colorectal and prostate cancers and melanoma.

Factors at Play

Biocept’s commercial test volume has decelerated on more than 50% reduction in testing volumes at a number of laboratories. In the first quarter, which had half a quarter impact of the pandemic, COVID-19 had resulted in a 15% to 25% sequential decline in commercial test volume. For the second quarter, the company expects commercial testing volumes to decline approximately 30% to 40% year over year.

Particularly, in the second quarter, oncology practices reduced their hours of operation and postponed or canceled patient appointments. Similarly, many hospitals reduced surgeries of cancer patients. Further, declines in clinical trial enrollment have been affecting sales of CEE-Sure blood collection tubes and research-use-only or RUO kits. Notably, these products comprise a relatively modest percentage of the company’s overall revenues. All these are likely to have adversely impacted the company’s top line in the second quarter.

Biocept, Inc. Price and EPS Surprise

Biocept, Inc. Price and EPS Surprise

Biocept, Inc. price-eps-surprise | Biocept, Inc. Quote

We are however impressed with the company’s significant increase in average revenue per patient as physicians are ordering more assays for sample.  Further, over the past few months, the company has broadened its test menu to run samples for COVID-19 testing. Biocept has also expanded its relationship with ThermoFisher Scientific and has validated the latter’s FDA approved EUA testing of the TaqPath molecular diagnostic platform for SARS-COVID-2. These developments are expected to have significantly added to the company’s second-quarter revenues.

In this regard we note that, per the company’s Aug 3 announcement, till that date it received more than 7,000 and processed more than 6,500 COVID-19 specimens using RT-PCR technology at its CLIA-certified, CAP-accredited high-complexity molecular lab. The company had distributed nearly 12,000 COVID-19 PCR specimen collection kits till Aug 3, and had approximately 18,000 additional collection kits assembled and available for immediate distribution. A significant chunk of this development took place in the second quarter.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter 2020 revenues is pegged at $1.30 million, suggesting a 9.2% rise from the year-ago reported figure.

The Zacks Consensus Estimate for the bottom line is oegged at a loss of 4 cents per share, implying an improvement of 89.5% from the year-ago reported figure.

What Our Model Suggests

Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. However, this is not the case here as you can see:

Earnings ESP: Biocept has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Stocks to Consider

Here are a few medical stocks with the right combination of elements to beat on earnings this reporting cycle. All the stocks currently carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Integra LifeSciences Holdings Corporation (IART - Free Report) has an Earnings ESP of +20.69% and a Zacks Rank of 3.

Evolus, Inc. (EOLS - Free Report) has an Earnings ESP of +6.75% and a Zacks Rank of 3.

Cellectar Biosciences, Inc. (CLRB - Free Report) has an Earnings ESP of +10.99% and a Zacks Rank of 3.

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