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Arena (ARNA) Q2 Earnings: What's in Store for the Stock?
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Arena Pharmaceuticals, Inc. is expected to report second quarter 2016 results on Aug 3. Arena had delivered a positive earnings surprise in the last quarter. Let’s see how things are shaping up for this announcement.
Factors at Play
Arena’s only approved product is obesity treatment, Belviq, whose performance remains lackluster. Driving sales in the U.S. anti-obesity market remains challenging due to several factors like the tendency of healthcare providers to treat symptoms of obesity rather than the disease itself, a narrow focus on certain patient types for treatment and historically low third-party insurance coverage.
In fact, in late June, Arena announced a cut in its U.S. workforce and a shift in focus to its pipeline. Given Belviq’s lackluster performance, investor focus will remain on the company’s progress with its pipeline.
Meanwhile, Arena intends to continue supporting Eisai Co., Ltd. with respect to Belviq -- Belviq’s sales could get a boost provided positive data is generated from the cardiovascular outcomes trial (CVOT).
Arena will provide an update on the second quarter call on its strategic focus and streamlining efforts.
Surprise History
Arena’s performance has been strong over the last four quarters with the company surpassing earnings expectations in each of the last four quarters with an average earnings surprise of +16.31%.
Our proven model does not conclusively show that Arena is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below.
Zacks ESP: The Earnings ESP for Arena is -9.09%. This is because the Most Accurate estimate is a loss of 12 cents per share while the Zacks Consensus Estimate is a loss of 11 cents per share.
Zacks Rank: Arena carries a Zacks Rank #3 (Hold). Note that stocks with Zacks Ranks of #1, #2 and #3 have a significantly higher chance of beating earnings. The sell-rated stocks (#4 and #5) should never be considered going into an earnings announcement.
Stocks to Consider
Here are some health care stocks you may want to consider as our model shows that they have the right combination of elements to post a beat this quarter.
The Earnings ESP for Exelixis, Inc. (EXEL - Free Report) is +3.70% and it carries a Zacks Rank #3. The company is expected to release second-quarter results on Aug 3.
Fate Therapeutics, Inc. (FATE - Free Report) has an Earnings ESP of +12.9% and carries a Zacks Rank #3. It is expected to release second-quarter results on Aug 3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Arena (ARNA) Q2 Earnings: What's in Store for the Stock?
Arena Pharmaceuticals, Inc. is expected to report second quarter 2016 results on Aug 3. Arena had delivered a positive earnings surprise in the last quarter. Let’s see how things are shaping up for this announcement.
Factors at Play
Arena’s only approved product is obesity treatment, Belviq, whose performance remains lackluster. Driving sales in the U.S. anti-obesity market remains challenging due to several factors like the tendency of healthcare providers to treat symptoms of obesity rather than the disease itself, a narrow focus on certain patient types for treatment and historically low third-party insurance coverage.
In fact, in late June, Arena announced a cut in its U.S. workforce and a shift in focus to its pipeline. Given Belviq’s lackluster performance, investor focus will remain on the company’s progress with its pipeline.
Meanwhile, Arena intends to continue supporting Eisai Co., Ltd. with respect to Belviq -- Belviq’s sales could get a boost provided positive data is generated from the cardiovascular outcomes trial (CVOT).
Arena will provide an update on the second quarter call on its strategic focus and streamlining efforts.
Surprise History
Arena’s performance has been strong over the last four quarters with the company surpassing earnings expectations in each of the last four quarters with an average earnings surprise of +16.31%.
ARENA PHARMA Price and EPS Surprise
ARENA PHARMA Price and EPS Surprise | ARENA PHARMA Quote
Earnings Whispers?
Our proven model does not conclusively show that Arena is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below.
Zacks ESP: The Earnings ESP for Arena is -9.09%. This is because the Most Accurate estimate is a loss of 12 cents per share while the Zacks Consensus Estimate is a loss of 11 cents per share.
Zacks Rank: Arena carries a Zacks Rank #3 (Hold). Note that stocks with Zacks Ranks of #1, #2 and #3 have a significantly higher chance of beating earnings. The sell-rated stocks (#4 and #5) should never be considered going into an earnings announcement.
Stocks to Consider
Here are some health care stocks you may want to consider as our model shows that they have the right combination of elements to post a beat this quarter.
The Earnings ESP for Exelixis, Inc. (EXEL - Free Report) is +3.70% and it carries a Zacks Rank #3. The company is expected to release second-quarter results on Aug 3.
Fate Therapeutics, Inc. (FATE - Free Report) has an Earnings ESP of +12.9% and carries a Zacks Rank #3. It is expected to release second-quarter results on Aug 3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>