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Can Zymeworks (ZYME) Beat Expectations This Earnings Season?
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We expect investors to focus on the updates related to Zymeworks Inc. (ZYME - Free Report) pipeline candidates when it reports fourth-quarter 2022 results in late February.
Shares of Zymeworks have increased 25% in the past year against the industry’s decline of 8.5%.
Image Source: Zacks Investment Research
ZYME’s earnings surpassed expectations in two of the trailing four quarters, the average positive surprise being 1.70%. In the last reported quarter, Zymeworks reported a positive earnings surprise of 23.40%.
Let us see how things have shaped up for the quarter to be reported.
Factors to Consider
In the absence of a marketed product, ZYME is expected to provide updates on its pipeline candidates, mainly Zanidatamab for the treatment of patients with HER2-expressing cancers.
Zymeworks and partners, BeiGene Ltd (BGNE - Free Report) and Jazz Pharmaceuticals Ireland Limited (JAZZ - Free Report) , are jointly developing ZYME’s lead product candidate zanidatamab. Zymewoks has entered into separate agreements with BieGene and Jazz Pharmaceuticals. Per the terms of the agreements, each of BeiGene and Jazz has been given exclusive rights to develop and commercialize zanidatamab in different territories.
Zanidatamab, a HER2-targeted bispecific antibody, is currently being evaluated in global phase I, phase II and pivotal clinical studies to treat patients with HER2-expressing cancers, including biliary tract, gastroesophageal adenocarcinomas, breast and other tumor types. In December 2022, Zymeworks announced positive top-line data from its HERIZON-BTC-01 phase IIb study of zanidatamab as monotherapy in patients with previously treated HER2-amplified and expressing biliary tract cancers. In the study, Zanidatamab as monotherapy achieved a confirmed objective response rate of 41.3% and a median duration of response of 12.9 months in the above-mentioned patient group. Full results from the study are expected to be presented at a medical meeting in 2023.
Zymeworks, along with partner, BeiGene is also working on an antibody drug conjugate with zanidatamab zovodotin (ZW49) in a phase I study to treat patients with locally advanced or metastatic HER2-expressing cancers upon failure of treatment with existing approved therapies. This study is currently enrolling patients.
Earnings Whisper
Our proven model conclusively predicts an earnings beat for Zymeworks in the to-be-reported quarter. 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. This is the case here as elaborated below.
Earnings ESP: Zymeworks’ Earnings ESP is +8.87% as the Most Accurate Estimate of $5.03 is higher than the Zacks Consensus Estimate of $4.62. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Editas’ stock has declined 38.2% in the past year. Editas beat earnings estimates in all the last four quarters. EDIT has an earnings surprise of 11.12% on average.
Image: Bigstock
Can Zymeworks (ZYME) Beat Expectations This Earnings Season?
We expect investors to focus on the updates related to Zymeworks Inc. (ZYME - Free Report) pipeline candidates when it reports fourth-quarter 2022 results in late February.
Shares of Zymeworks have increased 25% in the past year against the industry’s decline of 8.5%.
Image Source: Zacks Investment Research
ZYME’s earnings surpassed expectations in two of the trailing four quarters, the average positive surprise being 1.70%. In the last reported quarter, Zymeworks reported a positive earnings surprise of 23.40%.
Let us see how things have shaped up for the quarter to be reported.
Factors to Consider
In the absence of a marketed product, ZYME is expected to provide updates on its pipeline candidates, mainly Zanidatamab for the treatment of patients with HER2-expressing cancers.
Zymeworks and partners, BeiGene Ltd (BGNE - Free Report) and Jazz Pharmaceuticals Ireland Limited (JAZZ - Free Report) , are jointly developing ZYME’s lead product candidate zanidatamab. Zymewoks has entered into separate agreements with BieGene and Jazz Pharmaceuticals. Per the terms of the agreements, each of BeiGene and Jazz has been given exclusive rights to develop and commercialize zanidatamab in different territories.
Zanidatamab, a HER2-targeted bispecific antibody, is currently being evaluated in global phase I, phase II and pivotal clinical studies to treat patients with HER2-expressing cancers, including biliary tract, gastroesophageal adenocarcinomas, breast and other tumor types. In December 2022, Zymeworks announced positive top-line data from its HERIZON-BTC-01 phase IIb study of zanidatamab as monotherapy in patients with previously treated HER2-amplified and expressing biliary tract cancers. In the study, Zanidatamab as monotherapy achieved a confirmed objective response rate of 41.3% and a median duration of response of 12.9 months in the above-mentioned patient group. Full results from the study are expected to be presented at a medical meeting in 2023.
Zymeworks, along with partner, BeiGene is also working on an antibody drug conjugate with zanidatamab zovodotin (ZW49) in a phase I study to treat patients with locally advanced or metastatic HER2-expressing cancers upon failure of treatment with existing approved therapies. This study is currently enrolling patients.
Earnings Whisper
Our proven model conclusively predicts an earnings beat for Zymeworks in the to-be-reported quarter. 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. This is the case here as elaborated below.
Earnings ESP: Zymeworks’ Earnings ESP is +8.87% as the Most Accurate Estimate of $5.03 is higher than the Zacks Consensus Estimate of $4.62. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zymeworks Inc. Price, Consensus and EPS Surprise
Zymeworks Inc. price-consensus-eps-surprise-chart | Zymeworks Inc. Quote
Zacks Rank: Zymeworks has a Zacks Rank #3
Another Stock to Consider
Here is a biotech stock that has the right combination of elements to beat on earnings this time around:
Editas Medicine, Inc. (EDIT - Free Report) has an Earnings ESP of +8.58% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Editas’ stock has declined 38.2% in the past year. Editas beat earnings estimates in all the last four quarters. EDIT has an earnings surprise of 11.12% on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.