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Celularity (CELU) to Report Q4 Earnings: What's in the Cards?

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We expect investors to focus on the updates related to Celularity’s (CELU - Free Report) pipeline when it reports fourth-quarter and full-year 2022 results.

In the year so far, shares of CELU have declined 38.0% compared to the industry’s 3.6% fall.

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Celularity’s surprise history has been mixed, with earnings beating estimates in three of the trailing four quarters while missing the same on one occasion. The average surprise is 51.01%. In the last reported quarter, the company’s earnings beat estimates by 111.54%.


Let’s see how things have shaped up for this announcement.

Factors at Play

Since its incorporation, Celularity has funded its operations primarily with proceeds from preferred stock sales and revenues generated through its biobanking and degenerative disease commercial operations.

The company does not have any approved/marketed drugs in its portfolio. Hence, the focus of the fourth-quarter earnings call will likely be on updates related to Celularity’s pipeline. The company’s pipeline, consisting of off-the-shelf placental-derived allogeneic cell therapies, is still in early-stage development.

CYNK-001 is a placental-derived unmodified natural killer (NK) cell being evaluated as a potential treatment for acute myeloid leukemia (AML) and glioblastoma multiforme in phase I and phase I/IIa studies, respectively.

Last July, management announced that it had dosed the first participant in the phase I portion of the phase I/IIa study evaluating CYNK-101, a genetically modified version of a placental-derived NK-cell, for the treatment of advanced HER2+ gastric and gastroesophageal junction (G/GEJ) cancers.

In January 2023, Celularity announced long-term follow-up data after a re-analysis of three legacy studies evaluatingits legacy placental-derived mesenchymal-like adherent stromal cell (MLASC) therapy in patients with moderate-to-severe Crohn’s disease. Data from the study showed clinically meaningful and durable benefits for up to two years in the limited number of patients studied. Based on the above data, management will continue to assess the MLASC therapy in this indication condition using its next-generation MLASC therapeutic candidate. The company is also looking for strategic partnerships to advance development in this indication

Investors could also anticipate updates on CYCART-19, a CAR-T cell candidate developed for treating B-cell malignancies. Management is currently discussing with the FDA to resolve the latter’s queries on the IND application to commence an early-stage study later this year.

Earnings Whispers

Our proven model does not predict an earnings beat for Celularity 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. Unfortunately, that is not thecase 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: Celularity has an Earnings ESP of 0.00% as the Most Accurate Estimate and Zacks Consensus Estimate both stand at a loss of 25 cents per share.

Zacks Rank: Celularity has a Zacks Rank #3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are a few stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Mirum Pharmaceuticals (MIRM - Free Report) has an Earnings ESP of +10.86% and a Zacks Rank #3.

Shares of Mirum Pharmaceuticals have risen 22.4% in the year-to-date period. Earnings of Mirum Pharmaceuticals beat estimates in three of the last four quarters while missing the mark on one occasion, witnessing a trailing four-quarter negative earnings surprise of 3.03%, on average. In the last reported quarter, Mirum Pharmaceuticals’ earnings beat estimates by 2.86%.

Mirum Pharmaceuticals is scheduled to release fourth-quarter 2022 results on Mar 8, after market close.

Clene (CLNN - Free Report) has an Earnings ESP of +13.33% and a Zacks Rank #3.

Clene’sstock has risen 20.0% in the year so far. Clene’s earnings missed estimates in three of the last four quarters while beating the mark on one occasion, delivering a trailing four-quarter positive earnings surprise of 3.04%, on average. In the last reported quarter, Clene’s earnings missed estimates and reported an earnings surprise of 39.13%.

Cullinan Oncology (CGEM - Free Report) has an Earnings ESP of +7.69% and a Zacks Rank #3.

Cullinan Oncology’s stock has risen 9.0% year-to-date. Cullinan Oncology’s earnings beat estimates in two of the last four quarters and missed the mark on two other occasions, delivering a trailing four-quarter negative earnings surprise of 24.40%, on average.In the last reported quarter, Cullinan Oncology’s earnings beat estimates by 44.33%.

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

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