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OPKO Health (OPK) to Report Q1 Earnings: What's in Store?

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OPKO Health, Inc. (OPK - Free Report) is scheduled to release first-quarter 2020 results on May 6, after the closing bell. In the last reported quarter, the company delivered a positive earnings surprise of 25%.

Q1 Estimates

Currently, the Zacks Consensus Estimate for first-quarter revenues is pegged at $215.9million, suggesting growth of 2.9% from the year-ago reported number. The consensus mark for earnings stands at a loss of 9 cents per share.

Key Catalysts

OPKO Health is likely to have witnessed top-line growth in the to-be-reported quarter driven by robust performance across its segments. In fact, revenues from Products are anticipated in the range of $30-$32 million (including revenues from RAYALDEE between $9.3 million and $10.5 million) in the first quarter. Meanwhile, revenues from Services are anticipated between $168 million and $173 million.

OPKO Health might have benefitted from strong performance in RAYALDEE, the company’s leading renal product, in the to-be-reported quarter. Moreover, increase in total RAYALDEE prescriptions is expected to reflect on the company’s first-quarter performance.

OPKO Health, Inc. Price and EPS Surprise


OPKO Health, Inc. Price and EPS Surprise

OPKO Health, Inc. price-eps-surprise | OPKO Health, Inc. Quote

In fact, the open-label Phase 2 trial for RAYALDEE in hemodialysis patients has been progressing and the initial data is anticipated in first-quarter 2020. This may get reflected in the first-quarter performance.

Further, the company’s first-quarter performance is likely to reflect the OPKO Health’s BioReference Laboratories’ sustained progress. In fact, BioReference Laboratories’ collaborations with the state of New Jersey, City of Detroit and City of Miami with respect to offering testing for COVID-19 are expected to have positively impacted the company’s performance in the to-be-reported quarter.

Additionally, per management, OPKO Health will continue to make solid investments in R&D programs throughout 2020. We expect the company to have gained from such investments in the quarter to be reported.
However, higher operating losses might weigh on the company’s overall results.

What Our Quantitative Model Suggests

Per our proven model, a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here as you will see.

Earnings ESP: OPKO Health has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: OPKO Health carries a Zacks Rank #2.

Stocks Worth a Look

Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.

Exact Sciences Corporation (EXAS - Free Report) has an Earnings ESP of +2.28% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Haemonetics Corporation (HAE - Free Report) has an Earnings ESP of +2.76% and a Zacks Rank of 3.

Aurora Cannabis Inc. (ACB - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank of 3.

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