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Celldex (CLDX): Will the Stock Surprise in Q3 Earnings?
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Celldex Therapeutics, Inc. (CLDX - Free Report) is expected to report third-quarter 2016 results on Nov 3. Celldex’s performance has been encouraging with a three-quarter average positive surprise of 4.85%.
In the last reported quarter, the company recorded a positive surprise of 3.03%. Let’s see how things are shaping up for this announcement.
Factors at Play
Celldex, a development-stage biopharmaceutical company, is focused on the development and commercialization of immunotherapies for the treatment of cancer and other difficult-to-treat diseases.
The company’s most advanced pipeline candidate is glembatumumab vedotin, currently being evaluated for the treatment of triple negative breast cancer (phase IIb) and metastatic melanoma (phase II). It is also being evaluated for the treatment of other cancers (squamous cell lung cancer, uveal melanoma and pediatric osteosarcoma) in which glycoprotein NMB is expressed.
Apart from glembatumumab vedotin, Celldex has several promising candidates in its pipeline, including varlilumab (several phase I/II combination studies across multiple types of cancer) and CDX-1401 (phase II – multiple solid tumors) among others.
Celldex earns revenues entirely from product development and licensing agreements, and contracts and grants. The company recognizes revenues under its clinical trial collaboration with Bristol-Myers Squibb Company (BMY - Free Report) for varlilumab. We believe the company will continue to record revenues from these sources in the third quarter of 2016 as well.
Meanwhile, operating expenses vary on a quarterly basis.
With no approved product in its portfolio, investor focus will remain on pipeline development at the company.
What Our Model Indicates
Our proven model does not conclusively show that Celldex 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 (Strong Buy), #2 (Buy) or #3 (Hold) to be able to beat estimates. But 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%. This is because the Most Accurate estimate is in line with the Zacks Consensus Estimate of a loss of 32 cents. Please check our Earnings ESP Filter that enables you find stocks that are expected to come out with earnings surprises.
Zacks Rank: Celldex’s Zacks Rank #3, when combined with its 0.00% ESP, makes surprise prediction difficult.
Note that we caution against stocks with Zacks Ranks #4 or 5 (Sell-rated stocks) going into an earnings announcement, especially when the company is seeing a negative estimate revision momentum.
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 Aerie Pharmaceuticals, Inc. is +8.57% and it carries a Zacks Rank #3. The company is slated to release third-quarter results on Nov 2.
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Celldex (CLDX): Will the Stock Surprise in Q3 Earnings?
Celldex Therapeutics, Inc. (CLDX - Free Report) is expected to report third-quarter 2016 results on Nov 3. Celldex’s performance has been encouraging with a three-quarter average positive surprise of 4.85%.
In the last reported quarter, the company recorded a positive surprise of 3.03%. Let’s see how things are shaping up for this announcement.
Factors at Play
Celldex, a development-stage biopharmaceutical company, is focused on the development and commercialization of immunotherapies for the treatment of cancer and other difficult-to-treat diseases.
The company’s most advanced pipeline candidate is glembatumumab vedotin, currently being evaluated for the treatment of triple negative breast cancer (phase IIb) and metastatic melanoma (phase II). It is also being evaluated for the treatment of other cancers (squamous cell lung cancer, uveal melanoma and pediatric osteosarcoma) in which glycoprotein NMB is expressed.
Apart from glembatumumab vedotin, Celldex has several promising candidates in its pipeline, including varlilumab (several phase I/II combination studies across multiple types of cancer) and CDX-1401 (phase II – multiple solid tumors) among others.
Celldex earns revenues entirely from product development and licensing agreements, and contracts and grants. The company recognizes revenues under its clinical trial collaboration with Bristol-Myers Squibb Company (BMY - Free Report) for varlilumab. We believe the company will continue to record revenues from these sources in the third quarter of 2016 as well.
Meanwhile, operating expenses vary on a quarterly basis.
With no approved product in its portfolio, investor focus will remain on pipeline development at the company.
What Our Model Indicates
Our proven model does not conclusively show that Celldex 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 (Strong Buy), #2 (Buy) or #3 (Hold) to be able to beat estimates. But 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%. This is because the Most Accurate estimate is in line with the Zacks Consensus Estimate of a loss of 32 cents. Please check our Earnings ESP Filter that enables you find stocks that are expected to come out with earnings surprises.
Zacks Rank: Celldex’s Zacks Rank #3, when combined with its 0.00% ESP, makes surprise prediction difficult.
Note that we caution against stocks with Zacks Ranks #4 or 5 (Sell-rated stocks) going into an earnings announcement, especially when the company is seeing a negative estimate revision momentum.
CELLDEX THERAPT Price and EPS Surprise
CELLDEX THERAPT Price and EPS Surprise | CELLDEX THERAPT 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.
Shire plc is scheduled to report third-quarter results on Nov 1. It has an Earnings ESP of +1.57% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Aerie Pharmaceuticals, Inc. is +8.57% and it carries a Zacks Rank #3. The company is slated to release third-quarter results on Nov 2.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>