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Epizyme (EPZM) Q3 Earnings: What's in Store for the Stock?
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Epizyme, Inc. is scheduled to report third-quarter 2016 results on Nov 3, before the opening bell. Last quarter, the company recorded a positive earnings surprise of 2.00%. Let’s see how things are shaping up for this quarter.
Factors Influencing This Quarter
Epizyme is a development-stage company with no approved products in its portfolio. Its top line comprises revenues earned through collaborations. Hence, investor focus will remain on pipeline updates.
Epizyme’s lead candidate, tazemetostat (an EZH2 inhibitor), is being evaluated for relapsed or refractory non-Hodgkin lymphoma (NHL) and advanced solid tumors.
The company is currently evaluating tazemetostat in a phase II study in adults with relapsed or refractory NHL, a phase II study in adults with certain genetically defined solid tumor (INI1-negative tumors, SMARCA4-negative tumors or synovial sarcomas) and a phase I study in children with certain INI1-negative tumors (rhabdoid tumors and synovial sarcomas).
Moreover, in Jul 2016, Epizyme entered into collaboration with Roche Holding AG (RHHBY - Free Report) to evaluate tazemetostat, in combination with Roche's Tecentriq, in a phase Ib study for the treatment of patients with relapsed or refractory diffuse large B cell lymphoma (DLBCL).
Research and development spend is expected to increase in 2016 due to expenses related to ongoing and planned studies on tazemetostat, including registration-supporting studies in patients with NHL, and adult and pediatric patients with certain genetically defined solid tumors.
Surprise History
Epizyme’s track record has been strong, with the company surpassing expectations thrice in the four trailing quarters and missed the same in one, with an average positive earnings surprise of 7.32%.
Our proven model does not conclusively show that Epizyme 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 -14.29% since the Most Accurate estimate is pegged at a loss of 64 cents and the Zacks Consensus Estimate stands at a loss of 56 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank:Though Epizyme has a Zacks Rank #3, a negative ESP 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.
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.
Allergan plc has an Earnings ESP of +0.56% and a Zacks Rank #3. The company is scheduled to report third-quarter results on Nov 2.
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Epizyme (EPZM) Q3 Earnings: What's in Store for the Stock?
Epizyme, Inc. is scheduled to report third-quarter 2016 results on Nov 3, before the opening bell. Last quarter, the company recorded a positive earnings surprise of 2.00%. Let’s see how things are shaping up for this quarter.
Factors Influencing This Quarter
Epizyme is a development-stage company with no approved products in its portfolio. Its top line comprises revenues earned through collaborations. Hence, investor focus will remain on pipeline updates.
Epizyme’s lead candidate, tazemetostat (an EZH2 inhibitor), is being evaluated for relapsed or refractory non-Hodgkin lymphoma (NHL) and advanced solid tumors.
The company is currently evaluating tazemetostat in a phase II study in adults with relapsed or refractory NHL, a phase II study in adults with certain genetically defined solid tumor (INI1-negative tumors, SMARCA4-negative tumors or synovial sarcomas) and a phase I study in children with certain INI1-negative tumors (rhabdoid tumors and synovial sarcomas).
Moreover, in Jul 2016, Epizyme entered into collaboration with Roche Holding AG (RHHBY - Free Report) to evaluate tazemetostat, in combination with Roche's Tecentriq, in a phase Ib study for the treatment of patients with relapsed or refractory diffuse large B cell lymphoma (DLBCL).
Research and development spend is expected to increase in 2016 due to expenses related to ongoing and planned studies on tazemetostat, including registration-supporting studies in patients with NHL, and adult and pediatric patients with certain genetically defined solid tumors.
Surprise History
Epizyme’s track record has been strong, with the company surpassing expectations thrice in the four trailing quarters and missed the same in one, with an average positive earnings surprise of 7.32%.
EPIZYME INC Price and EPS Surprise
EPIZYME INC Price and EPS Surprise | EPIZYME INC Quote
Earnings Whispers
Our proven model does not conclusively show that Epizyme 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 -14.29% since the Most Accurate estimate is pegged at a loss of 64 cents and the Zacks Consensus Estimate stands at a loss of 56 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank:Though Epizyme has a Zacks Rank #3, a negative ESP 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.
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.
Infinity Pharmaceuticals, Inc. is scheduled to report results on Nov 7. It has an Earnings ESP of +5.81% and sports a Zacks Rank #1.You can see the complete list of today’s Zacks #1 Rank stocks here.
Allergan plc has an Earnings ESP of +0.56% and a Zacks Rank #3. The company is scheduled to report 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>>