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What's in Store for BioSpecifics (BSTC) This Earnings Season?

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Shares of BioSpecifics Technologies Corp. (BSTC - Free Report) have increased 77.6% in the past year, against the industry’s decline of 16.1%.


In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate. Moreover, BioSpecifics’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missed in one, with the average earnings surprise being 17.04%.

Let’s see how things are shaping up prior to the announcement of the upcoming fourth-quarter and full-year 2018 results.

Factors Likely to Impact Q4 Results

BioSpecifics develops collagenase-based therapies, with a first-in-class collagenase-based product marketed a Xiaflex in the United States and Xiapex in Europe.

The company is witnessing continued growth for the two marketed indications for Xiaflex — Peyronie's Disease and Dupuytren's Contracture. We expect this positive trend to continue in the fourth quarter.

BioSpecificsannounced positive data for Xiaflex [collagenase clostridium histolyticum (CCH)] in two new potential indications in the fourth quarter. The company announced positive top-line results from its phase I study of CCH for the treatment of uterine fibroids in October 2018. Also, BioSpecifics’ partner, Endo International Plc. (ENDP - Free Report) announced positive data from the phase III studies of CCH for the treatment of cellulite in November 2018.

BioSpecifics is taking care of CCH’sdevelopment in the uterine fibroids  indication and has the right to initiate the development of any new potential indication not licensed by Endo.

Investors’ focus will be on pipeline updates in the fourth quarter.

What Does the Zacks Model Unveil?

Our proven model does not conclusively show an earnings beat for BioSpecifics in the to-be-reported 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.

Earnings ESP: BioSpecifics has an Earnings ESP of 0.0% as both the Most Accurate Estimate and the Zacks Consensus Estimate stand at a profit of 68 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: BioSpecifics currently has a Zacks Rank #3, which increases the predictive power of ESP. However, we need to have a positive Earnings ESP to be confident of an earnings beat.

Note that Sell-rated stocks (Zacks Rank #4 or 5) going into an earnings announcement are best avoided.

Stocks That Warrant a Look

Here are some stocks you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter.

BioDelivery Sciences International Inc. (BDSI - Free Report) is scheduled to report fourth-quarter results on Mar 14. The company has an Earnings ESP of +38.46% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Tilray Inc. (TLRY - Free Report) is expected to report fourth-quarter results on Mar 18. The company has an Earnings ESP of +7.41% and a Zacks Rank of 3.

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