Back to top

Image: Bigstock

Exelixis (EXEL) to Post Q2 Earnings: What is in the Cards?

Read MoreHide Full Article

Exelixis (EXEL - Free Report) is scheduled to report second-quarter 2022 results on Aug 9, after market close.

The company’s shares have gained 14.5% in the year so far against the industry's decline of 21.6%.

Zacks Investment Research
Image Source: Zacks Investment Research

Exelixis beat earnings estimates in three of the last four quarters, the average surprise being 206.86%. In the last reported quarter, the company beat earnings by 50%.

Factors at Play

Exelixis generates revenues from net product sales, license revenues and collaboration and service revenues.

Net product revenues were up 36.5% in the first quarter due to an increase in sales volume, primarily as a result of the growth in the number of units sold following the FDA’s approval of lead drug Cabometyx (cabozantinib) in combination with Opdivo as a first-line treatment of patients with advanced RCC in January 2021 and in part due to the longer duration of therapy for this combination.  The trend is likely to have continued in the second quarter.  The Zacks Consensus Estimate for sales of the drug stands at $338 million.

Collaboration revenues, comprising license revenues and collaboration services revenues, increased 6.3% on higher royalty revenues for the sales of cabozantinib outside of the United States generated by Exelixis’ collaboration partners, Ipsen Pharma SAS and Takeda Pharmaceutical Company Limited. The trend is likely to have continued in the to-be-reported quarter. 

In May, Exelixis announced that its partner Ipsen received approval from the European Commission for Cabometyx as a monotherapy for the treatment of adult patients with locally advanced or metastatic differentiated thyroid carcinoma (DTC), refractory or not eligible for radioactive iodine (RAI) who have progressed during or after prior systemic therapy. This approval allows for the marketing of the drug in this indication in all 27 member states of the European Union, Norway, Liechtenstein and Iceland. The label expansion of the drug is likely to have boosted sales.

Operating expenses are likely to have increased in the second quarter due to costs associated with the broader portfolio.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Exelixis this time around. 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. That is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: Earnings ESP for Exelixis is -8.65%.

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

Exelixis, Inc. Price, Consensus and EPS Surprise Exelixis, Inc. Price, Consensus and EPS Surprise

Exelixis, Inc. price-consensus-eps-surprise-chart | Exelixis, Inc. Quote

Stocks to Consider

Here are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.

Ionis Pharmaceuticals (IONS - Free Report) has an Earnings ESP of +27.61% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ionis has a mixed track record, having topped earnings estimates in two of the last four quarters and missing in the remaining two. It pulled off a four-quarter earnings surprise of 24.35%, on average.

Gilead Sciences, Inc. (GILD - Free Report) has an Earnings ESP of +0.17% and a Zacks Rank #3.

Gilead boasts a mixed track record, having topped earnings estimates in three of the last four quarters and missing in the remaining one. Gilead pulled off a four-quarter earnings surprise of 6.30% on average.

Zoetis (ZTS - Free Report) has an Earnings ESP of +2.17% and a Zacks Rank #3.

Zoetis topped earnings estimates in all of the last four quarters. Zoetis delivered a four-quarter earnings surprise of 9.05%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.



 

Published in