U.S. Markets closed

What's in the Cards for BioSpecifics (BSTC) in Q3 Earnings?

Zacks Equity Research
1 / 2

What's in the Cards for BioSpecifics (BSTC) in Q3 Earnings?

On BioSpecifics' (BSTC) Q3 conference call, investor focus will be on its progress with the development of CCH for treating uterine fibroids.

BioSpecifics Technologies Corp. BSTC is expected to report third-quarter 2018 results on Nov 9.

The company’s earnings beat estimates thrice in the last four reported quarters while missing the same on a single occasion, the average positive surprise being 11.37%. In the last reported quarter, BioSpecifics’ bottom line surpassed the consensus mark with a positive surprise of 20.41%.

Shares of BioSpecifics have soared 43% year to date against the industry’s decrease of 4.4%.

Let’s see, how things are shaping up for this announcement.

Factors to Consider

BioSpecifics’ only approved product is Xiaflex (collagenase clostridium histolyticum (CCH)), which is marketed in the United States by its partner Endo International plc ENDP for the treatment of Dupuytren's contracture and Peyronie's disease.

BioSpecifics gets royalty and license revenues from Endo International, comprising its total revenues. Xiaflex is also marketed under different trade names in ex-U.S. markets.

Meanwhile, BioSpecifics is conducting a phase I label expansion study, evaluating CCH for uterine fibroids. In the second quarter of 2018, BioSpecifics completed enrollment in the same. Last month, the company announced positive top-line data from this phase I program, which met the primary endpoint of safety and tolerability with no clinically significant adverse events reported.

Endo International is performing two phase III clinical analyses on CCH for treating cellulite with top-line data expected by this year-end.

On third-quarter conference call, we expect management to provide an update on the label expansion studies of Xiaflex.

Earnings Whispers

Our proven model does not conclusively show that BioSpecifics is likely to beat estimates this to-be-reported quarter. This is because a stock needs to have both a positive Earnings ESP and a solid Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.

Earnings ESP: BioSpecifics has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 55 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: BioSpecifics currently carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.

We caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.

BioSpecifics Technologies Corp Price and EPS Surprise

BioSpecifics Technologies Corp Price and EPS Surprise | BioSpecifics Technologies Corp Quote

Stocks That Warrant a Look

Here are some biotech stocks that you may want to consider as per our model, these have the right combination of elements to beat on earnings this reporting season.

Affimed N.V. AFMD is scheduled to release third-quarter results on Nov 7. The company has an Earnings ESP of +5.88% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

FibroGen, Inc FGEN has an Earnings ESP of +13.46% and a Zacks Rank #2. The company is scheduled to report third-quarter results on Nov 8.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BioSpecifics Technologies Corp (BSTC) : Free Stock Analysis Report
Affimed N.V. (AFMD) : Free Stock Analysis Report
Endo International plc (ENDP) : Free Stock Analysis Report
FibroGen, Inc (FGEN) : Free Stock Analysis Report
To read this article on Zacks.com click here.