Aurinia (AUPH) Moves 13.1% Higher: Will This Strength Last?
Aurinia Pharmaceuticals AUPH shares ended the last trading session 13.1% higher at $8.14. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 3.6% loss over the past four weeks.
The rise in share price was attributable to positive investor expectations for Lupkynis, the company’s sole marketed drug which is approved for treatment of adults with active lupus nephritis (LN). Earlier this September, the drug was approved in the European Union in LN indication. This approval also triggered a $30 million milestone payment receivable by AUPH which is to be recognized in third-quarter 2022.
This biotechnology company is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of +53.9%. Revenues are expected to be $38.11 million, up 159.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Aurinia, the consensus EPS estimate for the quarter has been revised 55.3% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on AUPH going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Aurinia belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Calliditas Therapeutics AB Sponsored ADR CALT, closed the last trading session 16.4% lower at $11.50. Over the past month, CALT has returned -7.7%.
For Calliditas Therapeutics AB Sponsored ADR , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.84. This represents a change of -1780% from what the company reported a year ago. Calliditas Therapeutics AB Sponsored ADR currently has a Zacks Rank of #2 (Buy).
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