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Viking (VKTX) to Report Q1 Earnings: What's in the Cards?

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We expect investors to focus on updates related to Viking Therapeutics’ (VKTX - Free Report) pipeline when it reports first-quarter 2024 results on Apr 24, after market close. In the last reported quarter, the company’s earnings met expectations.

Factors to Consider

Without an approved/marketed product in its portfolio, the focus is expected to be on updates related to Viking's pipeline consisting of three candidates — VK2735 (for obesity), VK2809 (for non-alcoholic steatohepatitis [NASH]) and VK0214 (for X-linked adrenoleukodystrophy (X-ALD)].

Viking Therapeutics is evaluating both oral and subcutaneous formulations of VK2735 in treating obesity. Last month, management reported data from a phase I study evaluating the oral formulation of the drug, which demonstrated dose-dependent reductions in mean body weight after 28 days of daily dosing. Patients who received the drug at the highest dose level (i.e., 40mg) lost up to 5.3% of their body weight compared with 2.1% in the placebo group. In fact, 57% of patients who received the 40mg dose lost at least 5% of their body weight. The drug was well-tolerated across all doses, with no serious adverse events.

Based on the above results, management will advance the oral version of VK2735 to mid-stage development by year-end. This data readout follows Viking’s mid-stage study results reported in February which evaluated a subcutaneous formulation of VK2375. Patients treated with this formulation had achieved a mean weight reduction of 14.7% after 13 weeks compared with 1.7% in the placebo group. Viking also intends to meet with the FDA to discuss the results to determine the next steps in the candidate’s development.

Investors will likely be seeking an update from management on its plans for a regulatory pathway for VK2735 in obesity.

Last year, VKTX reported positive 12-week data from the ongoing phase IIb VOYAGE study, evaluating VK2809 in patients with biopsy-confirmed NASH. The study met its primary endpoint of a statistically significant reduction in liver fat content in NASH and substantial reductions in low-density lipoprotein cholesterol, triglycerides and atherogenic lipoproteins against placebo. Viking plans to report 52-week treatment data from the VOYAGE study by June 2024-end.

Investors will likely expect an update from a phase Ib study on VK0214 in X-ALD. A data readout is also expected by June 2024-end.

Earnings Surprise History

Viking’s shares have skyrocketed 247.5% year to date against the industry’s 10.4% fall.

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Viking’s earnings performance has been mixed over the trailing four quarters. The company’s earnings beat estimates in one of the last four quarters, missed the mark twice and met the mark on one occasion. On average, VKTX registered an earnings surprise of 0.2% in the last four quarters.

Viking Therapeutics, Inc. Price and EPS Surprise


Viking Therapeutics, Inc. Price and EPS Surprise

Viking Therapeutics, Inc. price-eps-surprise | Viking Therapeutics, Inc. Quote


Earnings Whispers

Our proven model does not predict an earnings beat for Viking 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: Viking has an Earnings ESP of 0.00% as both the Most Accurate Estimate and Zacks Consensus Estimate are pegged at a loss of 27 cents per share.

Zacks Rank: Viking 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.

argenx (ARGX - Free Report) has an Earnings ESP of +40.14% and a Zacks Rank #3.

argenx’s stock has lost 5.8% year to date. argenx beat earnings estimates in two of the last four quarters, missed the mark on one occasion while meeting the mark on another. On average, ARGX witnessed an earnings surprise of 14.18% in the last four quarters.

CytomX Therapeutics (CTMX - Free Report) has an Earnings ESP of +188.89% and a Zacks Rank #3.

CytomX Therapeutics’ stock has risen 11.6% year to date. CytomX beat earnings estimates in three of the last four quarters while missing the mark on one occasion. On average, CTMX delivered an earnings surprise of 57.94% in the last four quarters.

Sarepta Therapeutics (SRPT - Free Report) has an EarningsESP of +123.86% and a Zacks Rank #3.

Shares of Sarepta Therapeutics have gained 20.9% in the year-to-date period. Earnings of Sarepta beat estimates in each of the last four quarters, delivering an average earnings surprise of 464.56%.

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

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