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What's in the Cards for Puma (PBYI) This Earnings Season?
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Puma Biotechnology, Inc. (PBYI - Free Report) is expected to report second-quarter 2016 results on Aug 8. The company’s track record has been mostly disappointing. While it missed estimates in three of the trailing four quarters, it met the same in one. Overall, the company has recorded an average negative surprise of 13.74%.
In the last reported quarter, Puma Biotech posted a negative surprise of 17.74%. Let’s see how things are shaping up for this announcement.
Neratinib in Focus
Puma Biotech has made significant progress with its lead candidate, neratinib (PB272). Toward the end of the quarter, the company announced the filing of a marketing authorization application with the European Medicines Agency seeking approval for neratinib. The company is looking to get neratinib approved for the extended adjuvant treatment of HER2-positive early stage breast cancer that has previously been treated with Roche Holding AG’s (RHHBY - Free Report) Herceptin (trastuzumab)-based adjuvant therapy.
The company also filed a new drug application with the FDA for neratinib late last month.
While several phase II combination studies on neratinib are ongoing including HER2-negative breast cancer and others, the company presented several data as well as announced publication of data during the quarter.
With no approved product in Puma Biotech’s portfolio at the moment, the company does not generate revenues yet.
At the time of announcing first-quarter results, the company had projected net loss to narrow in the subsequent quarters on the back of an expected reduction in clinical trial expenses and completion of regulatory filings for neratinib. The company also expects its research and development expenses to decrease in subsequent quarters for the same reasons.
Investor focus should remain on updates pertaining to the development of neratinib.
What Our Model Indicates
Our proven model does not conclusively show that Puma Biotech is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is pegged at 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at a loss of $2.20 per share.
Zacks Rank: Puma Biotech currently carries a Zacks Rank #3. The stock’s Zacks Rank #3 when combined with an ESP of 0.00% makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here are a couple of health care stocks that you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter.
The Earnings ESP for Impax Laboratories Inc. is +3.03% and it carries a Zacks Rank #2. The company is scheduled to report second-quarter release results on Aug 9.
Mylan N.V. has an Earnings ESP of +1.75% and carries a Zacks Rank #2. It is also scheduled to report second-quarter results on Aug 9.
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What's in the Cards for Puma (PBYI) This Earnings Season?
Puma Biotechnology, Inc. (PBYI - Free Report) is expected to report second-quarter 2016 results on Aug 8. The company’s track record has been mostly disappointing. While it missed estimates in three of the trailing four quarters, it met the same in one. Overall, the company has recorded an average negative surprise of 13.74%.
In the last reported quarter, Puma Biotech posted a negative surprise of 17.74%. Let’s see how things are shaping up for this announcement.
Neratinib in Focus
Puma Biotech has made significant progress with its lead candidate, neratinib (PB272). Toward the end of the quarter, the company announced the filing of a marketing authorization application with the European Medicines Agency seeking approval for neratinib. The company is looking to get neratinib approved for the extended adjuvant treatment of HER2-positive early stage breast cancer that has previously been treated with Roche Holding AG’s (RHHBY - Free Report) Herceptin (trastuzumab)-based adjuvant therapy.
The company also filed a new drug application with the FDA for neratinib late last month.
While several phase II combination studies on neratinib are ongoing including HER2-negative breast cancer and others, the company presented several data as well as announced publication of data during the quarter.
With no approved product in Puma Biotech’s portfolio at the moment, the company does not generate revenues yet.
At the time of announcing first-quarter results, the company had projected net loss to narrow in the subsequent quarters on the back of an expected reduction in clinical trial expenses and completion of regulatory filings for neratinib. The company also expects its research and development expenses to decrease in subsequent quarters for the same reasons.
Investor focus should remain on updates pertaining to the development of neratinib.
What Our Model Indicates
Our proven model does not conclusively show that Puma Biotech is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is pegged at 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at a loss of $2.20 per share.
Zacks Rank: Puma Biotech currently carries a Zacks Rank #3. The stock’s Zacks Rank #3 when combined with an ESP of 0.00% makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
PUMA BIOTECHNLG Price and EPS Surprise
PUMA BIOTECHNLG Price and EPS Surprise | PUMA BIOTECHNLG Quote
Stocks That Warrant a Look
Here are a couple of health care stocks that you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter.
The Earnings ESP for Impax Laboratories Inc. is +3.03% and it carries a Zacks Rank #2. The company is scheduled to report second-quarter release results on Aug 9.
Mylan N.V. has an Earnings ESP of +1.75% and carries a Zacks Rank #2. It is also scheduled to report second-quarter results on Aug 9.
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 >>