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Biotech Stock Q1 Earnings Due on May 12: ADPT, VIR, TPTX

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There are a few Medical sector releases lined up for this week. The sector comprises pharma/biotech and medical device companies.

Per the Earnings Trends report of May 6, 76.9% of the companies in the Medical sector, constituting nearly 84.5% of the sector’s market capitalization, reported earnings. While 85% of the companies that have reported beat earnings estimates, 77.5% beat on sales. Earnings are up 8.4% year over year on 10.2% higher revenues. Overall, first-quarter earnings and sales growth for the Medical sector is expected to be 9% and 8.8%, respectively.

Of the large drug/biotech companies that have reported so far, most came up with better-than-expected earnings. The majority benefited from stockpiling of consumer healthcare products and medicines by consumers/patients/distributors amid coronavirus-led lockdown. Sales of drugs/medicines that require significant physician office or institutional visits were hurt in the quarter, while oral and self-administered medicines and consumer products’ sales were aided by stockpiling.

Most companies maintained their financial guidance for the year with J&J (JNJ - Free Report) and Merck (MRK - Free Report) being exceptions. Both lowered their financial outlooks.

Let’s analyze three biotech companies that are set to report first-quarter 2020 results on May 12.

Adaptive Biotechnologies Corporation (ADPT - Free Report)

This Seattle, WA-based small biotech went public on Nasdaq in June last year. In the three quarters that it has reported since then, Adaptive Biotechnologies missed expectations in two quarters while beating in one, with the average negative earnings surprise being 230.32%

Adaptive Biotechnologies has an EarningsESP of +7.69% and a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for loss stands at 22 cents per share.

Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1, 2 (Buy) or 3 increases the odds of an earnings beat.  You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Vir Biotechnology (VIR - Free Report)

This San Francisco based clinical-stage immunology company has an Earnings ESP of 0.00% and a Zacks Rank #2. The Zacks Consensus Estimate for the first quarter is pegged at a loss of 48 cents per share.

It delivered a negative earnings surprise in both the quarters it reported after it went public in October last year, with the average being 278.16%.

Turning Point Therapeutics (TPTX - Free Report)

This California-based biotech developing novel small molecule, targeted oncology therapies has an Earnings ESP of 0.00% and a Zacks Rank of 1. The Zacks Consensus Estimate for the first quarter is pegged at a loss of 67 cents per share. Turning Point Therapeutics delivered an average negative surprise of 9.3%.

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