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Proteostasis (PTI) to Report Q4 Earnings: What's in Store?

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Investors will focus on Proteostasis Therapeutics, Inc.’s  studies on triple combination regimes for cystic fibrosis when it reports fourth-quarter 2019 results.

The company’s performance over the previous four quarters has been mixed. It beat earnings estimates in three, while missed the same in one of the trailing four quarters, with the average positive surprise being 20.7%. In the last reported quarter, Proteostasis delivered a positive surprise of 37.5%.

Shares of the company have plunged 56.1% in the past year compared with the industry’s 8.5% decline.

Let’s see how things have shaped up for this announcement.

Factors to Consider

Proteostasishas been developing its proprietary triple combination candidates — PTI-801, a cystic fibrosis transmembrane conductance regulator (CFTR) corrector; PTI-808, a CFTR potentiator; and PTI-428, a CFTR amplifier. As the company has no marketed products in its pipeline, we expect it to provide updates on its pipeline on the conference call.

During the third quarter of 2019, the company completed enrollment of its 28-day global phase II study of doublet, and triplet CFTR combinations in F508del homozygous and heterozygous CF subjects 18 years of age and older. In December 2019, the company announced positive top-line results from the study.

In December 2019, the company announced positive, initial ex-vivo results of PTI's proprietary CFTR modulators — PTI-801, PTI-808, and PTI-428 — in individuals with CF who are ineligible for the current standard of care CFTR modulator therapies due to their genotype. Early results support the initiation of enrollment of responding subjects into HIT-CF's clinical study known as "CHOICES" (Crossover trial based on Human Organoid Individual response in CF - Efficacy Study), which is designed to evaluate the translation of organoid ex-vivo response to potential clinical benefit, such as changes in FEV1and sweat chloride. We expect the company to provide updates related to the study during the conference call.

What Our Model Indicates

Our proven model does not conclusively predict an earnings beat for Proteostasis this time around. 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: It has an Earnings ESP of 0.00%, as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at a loss of 29 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

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 in the to-be-reported quarter.

Aduro Biotech Inc. has an Earnings ESP of +23.08% and a Zacks Rank #1.

AMAG Pharmaceuticals, Inc. has an Earnings ESP of +36.55% and a Zacks Rank #3.

Sage Therapeutics Inc. (SAGE - Free Report) has an Earnings ESP of +2.74% and a Zacks Rank #3. The company is scheduled to release fourth-quarter results on Feb 27.

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