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Femasys (FEMY) to Report Q3 Earnings: What's in the Cards?

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We expect the investors to focus on Femasys’ (FEMY - Free Report) product sales numbers when the company reports its third-quarter 2023 financial performance next month.

Femasys is a commercial-stage company with four approved products — FemaSeed (intratubal Insemination), FemVue (contrast generating device), FemCath (selective delivery catheter) and FemCerv (endocervical tissue sampler) — in its portfolio.

Year to date, shares of Femasys have shot up 30% compared with the industry’s 21.7% rise.

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Let us see how things have shaped up for the quarter to be reported.

Factors to Consider

Femasys currently recognizes revenues from its three marketed products — FemVue, FemCath and FemCerv.

In the previous quarter, the company’s sales figures increased year over year due to a significant rise in international sales. This trend is expected to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for Femasys’ sales in the third quarter of 2023 is pegged at $0.4 million.

However, sales in the United States declined year over year in the second quarter of 2023. This trend is also likely to have continued in the upcoming quarter.

Research and development costs are also expected to have risen in the to-be-reported quarter on the back of increased compensation to related personnel, professionals and outside consultants.

Sales and marketing expenses have also increased in the third quarter of 2023, as Femasys strives to expand the commercial availability of its marketed products and gears up to launch FemaSeed in the U.S. market.

Other Updates

Femasys received FDA approval for FemaSeed during the third quarter of 2023, which is expected to be commercially available in the United States in 2024. Per the company, FemaSeed is an innovative, less invasive and more affordable first-line treatment option for infertility.

An update regarding the commercial launch plans for FemaSeed is expected in the upcoming earnings release.

The company is also currently supporting an ongoing pivotal clinical study evaluating male factor infertility. An update regarding the late-stage study is also anticipated in the third-quarter earnings call.

FEMY’s clinical pipeline contains another candidate, FemBloc, which is currently being investigated in a pivotal study. The FINALE pivotal study is evaluating the safety and efficacy of FemBloc, a novel, non-surgical female permanent birth control approach.

Last month, the company announced the enrollment of the first patient in the FINALE pivotal study. An update regarding the progress of the study is also expected in the upcoming earnings release.

Earnings Whisper

Our proven model does not conclusively predict an earnings beat for Femasys 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 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: Femasys has an Earnings ESP of 0.00% as the Zacks Consensus Estimate and the Most Accurate Estimate both stand at a loss of 25 cents.

Zacks Rank: FEMY currently carries a Zacks Rank #3.

Stocks to Consider

Here are some stocks in the same industry that have the right combination of elements to beat on earnings this time around:

bluebird bio (BLUE - Free Report) has an Earnings ESP of +2.37% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

bluebird’s stock has declined 58.4% year to date. It beat earnings estimates in each of the last four quarters. BLUE has an earnings surprise of 89.60%, on average.

ACADIA Pharmaceuticals (ACAD - Free Report) has an Earnings ESP of +6.76% and a Zacks Rank #2.

ACADIA’s stock has increased 40.1% year to date. It beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions. ACAD has an earnings surprise of 20.33%, on average.

Ascendis Pharma (ASND - Free Report) has an Earnings ESP of +13.03% and a Zacks Rank #2.

Ascendis’ stock has decreased 28.7% year to date. It beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions. ASND has a negative earnings surprise of 8.64%, on average.

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