Is a Beat in Store for Endocyte (ECYT) This Earnings Season?
Endocyte, Inc. ECYT is scheduled to report second-quarter 2018 results on Jul 31, before market opens.
Endocyte logged a positive earnings surprise of 15.79% in the last reported quarter. The company has a mixed earnings surprise record, having surpassed the Zacks Consensus Estimate in two and missing in the other two of the trailing four quarters. Overall, the company delivered an average surprise of positive 1.40%.
Endocyte’s shares have rallied 263.1% year to date, compared with the industry’s gain of 2.4%.
Earnings Whispers
Our proven model shows that Endocyte is likely to beat on earnings in the to-be-reported quarter because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Earnings ESP: Endocyte has an Earnings ESP of +21.05% as the Most Accurate Estimate stands at a loss of 15 cents while the Zacks Consensus Estimate is pegged at a loss of 19 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Endocyte carries a Zacks Rank #2 which when combined with a positive Earnings ESP makes us reasonably confident of an earnings beat.
Note that Sell-rated stocks (Zacks Rank #4 or 5) going into an earnings announcement are best avoided.
Let's see how things are shaping up for this quarter.
Factors in Play
The company acquired exclusive worldwide rights to develop and commercialize PSMA-617 including the product candidate known as 177Lu-PSMA-617 from ABX GmbH in October 2017. The 177Lu-PSMA-617 candidate is a first-in-class radioligand and therapeutic (RLT) that targets prostate-specific membrane antigen (PSMA). The company initiated a phase III VISION study for177Lu-PSMA-617 for the treatment of patients with PSMA-positive metastatic castration-resistant prostate cancer, who have received at least one novel androgen axis drug and at least one taxane regimen.
The company remains optimistic about this candidate, which is its priority at the moment representing a greater than $1 billion market opportunity. 177Lu-PSMA-617 has the potential to be the first-in-class RLT to address both bone and soft tissue disease, and it is extremely important to the many patients suffering from mCRPC.
The company will also bring its adaptor-controlled chimeric antigen receptor t-cell (CAR T-cell) program-EC17 into the clinic in the fourth quarter of 2018 which holds great potential. The company remains focused to generate proof-of-concept data for the EC17 CAR T –cell program.
We expect the investors’ focus to remain on updates from these pipeline candidates at the Q2 earnings call.
Endocyte, Inc. Price and EPS Surprise
Endocyte, Inc. Price and EPS Surprise | Endocyte, Inc. Quote
Stocks to Consider
Here are some health care stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
Pacira Pharmaceuticals, Inc PCRX has an Earnings ESP of +46.94% and currently carries a Zacks Rank #2. The company is scheduled to release first-quarter results on Aug 1.
Endo International plc ENDP has an Earnings ESP of +1.37% and currently carries a Zacks Rank #3. The company is scheduled to release second-quarter results on Aug 8.
Jazz Pharmaceuticals plc JAZZ has an Earnings ESP of +1.60% and currently carries a Zacks Rank #3. The company is scheduled release first-quarter results on Aug 7.
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