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Is a Surprise in Store for Inovio (INO) This Earnings Season?
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Inovio Pharmaceuticals, Inc. (INO - Free Report) is scheduled to report second-quarter 2016 results on Aug 8, before the opening bell. In the trailing four quarters, Inovio’s performance has been mixed with the company recording an average positive surprise of 180.15%. While the company surpassed estimates on two occasions, it missed expectations in the other two.
In the last reported quarter, Inovio had posted a positive surprise of 52.17%. Let’s see how things are shaping up for this announcement.
Factors at Play
Inovio, a development-stage biopharmaceutical company, is focused on the development of active DNA immunotherapies and vaccine treatments targeting various cancer forms and infectious diseases. VGX-3100 is the most advanced candidate in the company’s pipeline. Following the successful end-of-phase-II meetings both with the FDA and the European Medicines Agency, the company plans to commence a pivotal phase III study on the candidate for the treatment of HPV-16/18-related high-grade cervical dysplasia (CIN 2/3) this year.
Apart from VGX-3100, Inovio has several other candidates in its pipeline in early- to mid-stage development. Inovio along with its partner GeneOne Life Science gained approval for the initiation of a phase I study evaluating the Zika vaccine, GLS-5700, in Jun 2016. The first patient was dosed in the study late last month.
Meanwhile, in late Apr 2016, the company acquired all of Bioject Medical Technologies Inc.’s assets, including the needle-free jet injection technology, devices, and intellectual property for $5.5 million in cash and stock in a bid to further boost its needle-free electroporation technology.
Inovio has collaborations with several companies and institutes for the development of its pipeline candidates. And with no approved product in its portfolio, Inovio depends largely on collaborations, grants and other payments for revenues as well as for the development of its pipeline candidates. Therefore, the top line at the company varies on a quarterly basis depending on the timing of such events.
Investor focus should remain on pipeline updates as a lot of pipeline related events are lined up along with the company’s plans related to the development of its Ebola and Zika vaccines.
What Our Model Indicates
Our proven model does not conclusively show that Inovio 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 0.00% since the Most Accurate estimate is in line with the Zacks Consensus Estimate of a loss of 26 cents per share.
Zacks Rank: Inovio currently carries a Zacks Rank #3. Inovio’s Zacks Rank #3 when combined with an ESP of 0.00% makes surprise prediction uncertain.
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 some 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 Acceleron Pharma, Inc. is +7.41% and it carries a Zacks Rank #3. The company is scheduled to report second-quarter results on Aug 4.
Mylan N.V. has an Earnings ESP of +1.75% and carries a Zacks Rank #2. It is scheduled to report second-quarter results on Aug 9.
The Earnings ESP for Impax Laboratories Inc. is +3.03% and it carries a Zacks Rank #2. The company is also scheduled to report second-quarter release results on Aug 9.
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Is a Surprise in Store for Inovio (INO) This Earnings Season?
Inovio Pharmaceuticals, Inc. (INO - Free Report) is scheduled to report second-quarter 2016 results on Aug 8, before the opening bell. In the trailing four quarters, Inovio’s performance has been mixed with the company recording an average positive surprise of 180.15%. While the company surpassed estimates on two occasions, it missed expectations in the other two.
In the last reported quarter, Inovio had posted a positive surprise of 52.17%. Let’s see how things are shaping up for this announcement.
Factors at Play
Inovio, a development-stage biopharmaceutical company, is focused on the development of active DNA immunotherapies and vaccine treatments targeting various cancer forms and infectious diseases. VGX-3100 is the most advanced candidate in the company’s pipeline. Following the successful end-of-phase-II meetings both with the FDA and the European Medicines Agency, the company plans to commence a pivotal phase III study on the candidate for the treatment of HPV-16/18-related high-grade cervical dysplasia (CIN 2/3) this year.
Apart from VGX-3100, Inovio has several other candidates in its pipeline in early- to mid-stage development. Inovio along with its partner GeneOne Life Science gained approval for the initiation of a phase I study evaluating the Zika vaccine, GLS-5700, in Jun 2016. The first patient was dosed in the study late last month.
Meanwhile, in late Apr 2016, the company acquired all of Bioject Medical Technologies Inc.’s assets, including the needle-free jet injection technology, devices, and intellectual property for $5.5 million in cash and stock in a bid to further boost its needle-free electroporation technology.
Inovio has collaborations with several companies and institutes for the development of its pipeline candidates. And with no approved product in its portfolio, Inovio depends largely on collaborations, grants and other payments for revenues as well as for the development of its pipeline candidates. Therefore, the top line at the company varies on a quarterly basis depending on the timing of such events.
Investor focus should remain on pipeline updates as a lot of pipeline related events are lined up along with the company’s plans related to the development of its Ebola and Zika vaccines.
What Our Model Indicates
Our proven model does not conclusively show that Inovio 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 0.00% since the Most Accurate estimate is in line with the Zacks Consensus Estimate of a loss of 26 cents per share.
Zacks Rank: Inovio currently carries a Zacks Rank #3. Inovio’s Zacks Rank #3 when combined with an ESP of 0.00% makes surprise prediction uncertain.
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.
INOVIO PHARMAC Price and EPS Surprise
INOVIO PHARMAC Price and EPS Surprise | INOVIO PHARMAC Quote
Stocks That Warrant a Look
Here are some 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 Acceleron Pharma, Inc. is +7.41% and it carries a Zacks Rank #3. The company is scheduled to report second-quarter results on Aug 4.
Mylan N.V. has an Earnings ESP of +1.75% and carries a Zacks Rank #2. It is scheduled to report second-quarter results on Aug 9.
The Earnings ESP for Impax Laboratories Inc. is +3.03% and it carries a Zacks Rank #2. The company is also scheduled to report second-quarter release 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 >>