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Avalo (AVTX) to Report Q4 Earnings: What's in the Cards?
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We expect investors to focus on updates related to Avalo Therapeutics’ (AVTX - Free Report) pipeline when it reports fourth-quarter and full-year 2023 results. In the last reported quarter, the company posted an earnings surprise of 90.00%.
Factors to Consider
Without an approved/marketed product in its portfolio, the focus is expected to be on updates related to Avalo's pipeline.
AVTX has only one pipeline candidate in clinical development, quisovalimab (AVTX-002), which is being evaluated across multiple immune-inflammatory indications. The candidate is being evaluated in separate phase II studies targeting non-eosinophilic asthma (NEA), crohn’s disease (CD) and COVID-19 acute respiratory distress syndrome (ARDS).
Management is currently in the process of securing funding for the quisovalimab program. Also, it intends to start clinical studies evaluating the drug in patients with ulcerative colitis (UC) or other inflammatory conditions.
Avalo also intends to move its second pipeline candidate, AVTX-002, to clinical development. In this regard, it intends to rapidly progress the candidate to investigational new drug (IND)-enabling studies. This advancement is subject to management securing external funding. If management secures this funding, it intends to evaluate multiple immune dysregulation disorders.
During the fourth quarter, management completed the sale of its three compounds, being developed for the treatment of congenital disorders of glycosylation (CDGs) to AUG Therapeutics. In return, AUG paid $150,000 as an upfront payment for each compound. AUG is also committed to making a milestone payment of $15 million for each compound, contingent on receiving FDA approval for a medical condition other than a rare pediatric disease. If AUG receives any payments from the sale of priority review vouchers granted by the FDA, Avalo will be entitled to receive up to 20% of those payments.
The above transaction is likely to have a positive impact on the company’s cash flow. Management is focused on reducing the utilization of its internal resources on non-core assets to focus on developing its immunology pipeline.
Earnings Surprise History
Avalo’s shares have lost 53.0% year to date against the industry’s 2.8% rise.
Image Source: Zacks Investment Research
Avalo’s earnings performance has been decent over the trailing four quarters. The company’s earnings beat estimates in three of the last four quarters and missed the mark on one occasion, registering an earnings surprise of 9.20% on average.
Our proven model does not predict an earnings beat for Avalo 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 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: Avalo has an Earnings ESP of 0.00% as both the Most Accurate Estimate and Zacks Consensus Estimate are pegged at a loss of $4.76 per share.
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.
Cullinan Oncology (CGEM - Free Report) has an Earnings ESP of +1.04% and a Zacks Rank #2.
Cullinan Oncology’s stock has risen 76.6% year to date. Cullinan beat earnings estimates in two of the last four quarters and missed the mark on one occasion while meeting the mark on another. On average, CGEM witnessed a negative earnings surprise of 10.66% in the last four quarters.
Arcutis Biotherapeutics (ARQT - Free Report) has an Earnings ESP of +25.58% and a Zacks Rank #3.
Arcutis Biotherapeutics’ stock has surged 199.7% year to date. Arcutisbeat earnings estimates in three of the last four quarters while missing the mark on one occasion. On average, ARQT delivered an earnings surprise of 9.23% in the last four quarters. Arcutis is scheduled to release its fourth-quarter results on Feb 27, before market open.
Sarepta Therapeutics (SRPT - Free Report) has an Earnings ESP of +306.25% and a Zacks Rank #3.
Shares of Sarepta Therapeutics have gained 41.6% in the year-to-date period. Earnings of Sareptabeat estimates in each of the last four quarters, delivering an average earnings surprise of 48.67%. Sarepta is scheduled to release its fourth-quarter results on Feb 28, after market closes.
Image: Bigstock
Avalo (AVTX) to Report Q4 Earnings: What's in the Cards?
We expect investors to focus on updates related to Avalo Therapeutics’ (AVTX - Free Report) pipeline when it reports fourth-quarter and full-year 2023 results. In the last reported quarter, the company posted an earnings surprise of 90.00%.
Factors to Consider
Without an approved/marketed product in its portfolio, the focus is expected to be on updates related to Avalo's pipeline.
AVTX has only one pipeline candidate in clinical development, quisovalimab (AVTX-002), which is being evaluated across multiple immune-inflammatory indications. The candidate is being evaluated in separate phase II studies targeting non-eosinophilic asthma (NEA), crohn’s disease (CD) and COVID-19 acute respiratory distress syndrome (ARDS).
Management is currently in the process of securing funding for the quisovalimab program. Also, it intends to start clinical studies evaluating the drug in patients with ulcerative colitis (UC) or other inflammatory conditions.
Avalo also intends to move its second pipeline candidate, AVTX-002, to clinical development. In this regard, it intends to rapidly progress the candidate to investigational new drug (IND)-enabling studies. This advancement is subject to management securing external funding. If management secures this funding, it intends to evaluate multiple immune dysregulation disorders.
During the fourth quarter, management completed the sale of its three compounds, being developed for the treatment of congenital disorders of glycosylation (CDGs) to AUG Therapeutics. In return, AUG paid $150,000 as an upfront payment for each compound. AUG is also committed to making a milestone payment of $15 million for each compound, contingent on receiving FDA approval for a medical condition other than a rare pediatric disease. If AUG receives any payments from the sale of priority review vouchers granted by the FDA, Avalo will be entitled to receive up to 20% of those payments.
The above transaction is likely to have a positive impact on the company’s cash flow. Management is focused on reducing the utilization of its internal resources on non-core assets to focus on developing its immunology pipeline.
Earnings Surprise History
Avalo’s shares have lost 53.0% year to date against the industry’s 2.8% rise.
Image Source: Zacks Investment Research
Avalo’s earnings performance has been decent over the trailing four quarters. The company’s earnings beat estimates in three of the last four quarters and missed the mark on one occasion, registering an earnings surprise of 9.20% on average.
Avalo Therapeutics, Inc. Price and EPS Surprise
Avalo Therapeutics, Inc. price-eps-surprise | Avalo Therapeutics, Inc. Quote
Earnings Whispers
Our proven model does not predict an earnings beat for Avalo 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 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: Avalo has an Earnings ESP of 0.00% as both the Most Accurate Estimate and Zacks Consensus Estimate are pegged at a loss of $4.76 per share.
Zacks Rank: Avalo currently carries a Zacks Rank #3. 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.
Cullinan Oncology (CGEM - Free Report) has an Earnings ESP of +1.04% and a Zacks Rank #2.
Cullinan Oncology’s stock has risen 76.6% year to date. Cullinan beat earnings estimates in two of the last four quarters and missed the mark on one occasion while meeting the mark on another. On average, CGEM witnessed a negative earnings surprise of 10.66% in the last four quarters.
Arcutis Biotherapeutics (ARQT - Free Report) has an Earnings ESP of +25.58% and a Zacks Rank #3.
Arcutis Biotherapeutics’ stock has surged 199.7% year to date. Arcutisbeat earnings estimates in three of the last four quarters while missing the mark on one occasion. On average, ARQT delivered an earnings surprise of 9.23% in the last four quarters. Arcutis is scheduled to release its fourth-quarter results on Feb 27, before market open.
Sarepta Therapeutics (SRPT - Free Report) has an Earnings ESP of +306.25% and a Zacks Rank #3.
Shares of Sarepta Therapeutics have gained 41.6% in the year-to-date period. Earnings of Sareptabeat estimates in each of the last four quarters, delivering an average earnings surprise of 48.67%. Sarepta is scheduled to release its fourth-quarter results on Feb 28, after market closes.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.