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NewLink (NLNK) to Report Q4 Earnings: What's in the Cards?

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We expect NewLink Genetics Corporation NLNK to provide updates on the merger with Lumos Pharma and pipeline candidates when it releases its fourth-quarter 2019 results.

The company’s surprise history has been impressive so far. Its earnings beat estimates in three of the trailing four quarters and came in line with the same in the remaining one. The four-quarter beat is 9.36%, on average. In the third quarter, NewLink reported in-line earnings.

Shares of NewLink have lost 2.5% in the past year compared with the industry’s decline of 3.2%.

Let’s see how things are shaping up for the quarter to be reported.

Key Developments in Q4

NewLink is a clinical-stage company, focused on developing novel immunotherapeutic products for the treatment of cancer. The company has no approved product in its portfolio yet and hence we expect updates on pipeline products.

Newlink earlier announced that it will merge with Lumos Pharma, a private clinical-stage biopharmaceutical company targeting rare and neglected diseases. Following the merger, Newlink will change its name to Lumos Pharma, Inc. During the conference call, we expect the company to provide updates on the progress of the merger.

Additionally, in December 2019, NewLink along with partner Merck (MRK - Free Report) announced the receipt of an FDA approval for Ervebo (Zaire Ebola virus), which is the first vaccine approved by the agency for the Ebola virus. The approval came three months ahead of the scheduled date of Mar 14, 2020. The FDA’s approval of the Ebola vaccine will trigger the issuance of a priority review voucher (PRV) owned by Merck, in which NewLink has a substantial economic interest. Thereafter, NewLink will have the right to monetize its share of interest in the voucher. We expect an update on this in the conference call.

Also, in November 2019, the European Commission (EC) granted a conditional marketing authorization to Ervebo. With this approval, the EC will grant a centralized marketing authorization to the vaccine with unified labeling that is valid in 31 European countries. We expect the company to provide an update on this along with the fourth-quarter results.

What Our Model Indicates

Our proven model does not conclusively predict an earnings beat for NewLink this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here, as you will see below.

Earnings ESP: NewLink has an Earnings ESP of 0.00%, as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at a loss of 28 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

 

NewLink Genetics Corporation Price and EPS Surprise

 

NewLink Genetics Corporation Price and EPS Surprise

NewLink Genetics Corporation price-eps-surprise | NewLink Genetics Corporation Quote

Stocks That Warrant a Look

Here are a few healthcare stocks worth considering, as our model shows that these have the right mix of elements to beat estimates this time around.

Vericel Corporation VCEL has an Earnings ESP of +11.29% and a Zacks Rank #1. The company is scheduled to release fourth-quarter results on Feb 25.

AMAG Pharmaceuticals, Inc. AMAG has an Earnings ESP of +31.03% and a Zacks Rank #3.

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