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What's in Store for Aytu BioScience's (AYTU) Q3 Earnings?
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Investors’ focus will be on Aytu BioScience, Inc.’s (AYTU - Free Report) extended distribution right to commercialize the clinically-validated and commercially-used coronavirus 2019 (COVID-19) IgG/IgM Rapid Test in North America, when it reports third-quarter fiscal 2020 results.
The company’s performance over the last four quarters has been mixed with two estimate misses and two earnings beats, the average negative surprise being 49.22%. In the last reported quarter, Aytu BioScience delivered a positive earnings surprise of 8.82%.
Shares of Aytu BioScience have rallied 44% so far this year compared with the industry’s increase of 3.3%.
Let’s see how things have shaped up for this announcement.
Factors to Note
Aytu BioScience is a specialty pharmaceutical company focused on commercializing novel products that address significant patient needs. Its top line mainly comprises product revenues from the sale of Natesto along with sales of other products, such as ZolpiMist, Tuzistra XR et al.
Natesto is the only FDA-approved nasal gel of testosterone for men with hypogonadism (low testosterone). ZolpiMist (zolpidem tartrate oral spray) won the nod for short-term treatment of insomnia and Tuzistra XR, the only 12-hour codeine-based antitussive syrup, is also approved by the regulatory agency. All these products are performing well since their respective launches, a trend that most likely continued in the to-be-reported quarter.
Meanwhile, revenues in the last reported quarter were drawn from two consecutive months’ sales contribution, backed by from the November 2019 acquisition of the Cerecor assets. It remains to be seen whether this upside too continued in the soon-to-be-reported quarter.
Key Developments
In March 2020, Aytu BioScience extended the distribution right to commercialize the clinically-validated and commercially-used coronavirus 2019 (COVID-19) IgG/IgM Rapid Test in North America. Following this, the company will gain the right to distribute and commercialize the COVID-19 rapid test in the United States, Canada and Mexico.
Per the company, the COVID-19 IgG/IgM Rapid Test was licensed from a Hong Kong-based corporation named L.B. Resources, Limited. The test is intended for professional use and usually delivers results between two and 10 minutes at the point-of-care.
The company sold the initial 100,000 tests to customers in the United States and is awaiting delivery of the next 500,000 tests.
We expect management to update in detail on the same during the upcoming earnings call.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Aytu BioScience 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 a positive surprise. But this is not the case here.
Earnings ESP: Aytu BioScience has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 39 cents per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: Aytu BioScience sports a Zacks Rank #1, which increases the predictive power of ESP. However, its 0.00% ESP makes surprise prediction difficult.
Alexion Pharmaceuticals has an Earnings ESP of +1.08% and a Zacks Rank of2. The company is scheduled to release results on May 6.
Alnylam Pharmaceuticals, Inc. (ALNY - Free Report) has an Earnings ESP of +4.44% and a Zacks Rank #3. The company is scheduled to release results on May 6.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
What's in Store for Aytu BioScience's (AYTU) Q3 Earnings?
Investors’ focus will be on Aytu BioScience, Inc.’s (AYTU - Free Report) extended distribution right to commercialize the clinically-validated and commercially-used coronavirus 2019 (COVID-19) IgG/IgM Rapid Test in North America, when it reports third-quarter fiscal 2020 results.
The company’s performance over the last four quarters has been mixed with two estimate misses and two earnings beats, the average negative surprise being 49.22%. In the last reported quarter, Aytu BioScience delivered a positive earnings surprise of 8.82%.
Shares of Aytu BioScience have rallied 44% so far this year compared with the industry’s increase of 3.3%.
Let’s see how things have shaped up for this announcement.
Factors to Note
Aytu BioScience is a specialty pharmaceutical company focused on commercializing novel products that address significant patient needs. Its top line mainly comprises product revenues from the sale of Natesto along with sales of other products, such as ZolpiMist, Tuzistra XR et al.
Natesto is the only FDA-approved nasal gel of testosterone for men with hypogonadism (low testosterone). ZolpiMist (zolpidem tartrate oral spray) won the nod for short-term treatment of insomnia and Tuzistra XR, the only 12-hour codeine-based antitussive syrup, is also approved by the regulatory agency. All these products are performing well since their respective launches, a trend that most likely continued in the to-be-reported quarter.
Meanwhile, revenues in the last reported quarter were drawn from two consecutive months’ sales contribution, backed by from the November 2019 acquisition of the Cerecor assets. It remains to be seen whether this upside too continued in the soon-to-be-reported quarter.
Key Developments
In March 2020, Aytu BioScience extended the distribution right to commercialize the clinically-validated and commercially-used coronavirus 2019 (COVID-19) IgG/IgM Rapid Test in North America. Following this, the company will gain the right to distribute and commercialize the COVID-19 rapid test in the United States, Canada and Mexico.
Per the company, the COVID-19 IgG/IgM Rapid Test was licensed from a Hong Kong-based corporation named L.B. Resources, Limited. The test is intended for professional use and usually delivers results between two and 10 minutes at the point-of-care.
The company sold the initial 100,000 tests to customers in the United States and is awaiting delivery of the next 500,000 tests.
We expect management to update in detail on the same during the upcoming earnings call.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Aytu BioScience 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 a positive surprise. But this is not the case here.
Earnings ESP: Aytu BioScience has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 39 cents per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: Aytu BioScience sports a Zacks Rank #1, which increases the predictive power of ESP. However, its 0.00% ESP makes surprise prediction difficult.
Aytu Bioscience, Inc. Price and EPS Surprise
Aytu Bioscience, Inc. price-eps-surprise | Aytu Bioscience, Inc. Quote
Stocks to Consider
Here are some biotech stocks that have the right combination of elements to beat on earnings this time around:
Exact Sciences Corporation (EXAS - Free Report) has an Earnings ESP of +2.28% and a Zacks Rank #2. The company is scheduled to release results on May 6. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alexion Pharmaceuticals has an Earnings ESP of +1.08% and a Zacks Rank of2. The company is scheduled to release results on May 6.
Alnylam Pharmaceuticals, Inc. (ALNY - Free Report) has an Earnings ESP of +4.44% and a Zacks Rank #3. The company is scheduled to release results on May 6.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>