Eton Pharma (ETON) to Report Q3 Earnings: What's in the Cards?
We expect the investors to focus on Eton Pharmaceuticals’ ETON product sales numbers when the company reports its third-quarter 2023 financial performance next month.
Eton is a commercial-stage company with three approved products, such as Alkindi Sprinkle, Carglumic Acid and Betaine Anhydrous, which are currently in its portfolio. Alkindi Sprinkle and Carglumic Acid sales are primary contributors to the top line, while the recently launched Betaine Anhydrous has also been witnessing solid uptake.
ETON’s earnings surpassed expectations in each of the trailing four quarters, delivering an average earnings surprise of 162.14%. In the last reported quarter, the company reported a positive earnings surprise of 300%.
Year to date, shares of Eton have shot up 37.2% compared with the industry’s 21.7% rise.
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Let us see how things have shaped up for the quarter to be reported.
Factors to Consider
Eton recognizes revenues under two heads in its income statement — Licensing revenues and Product sales and royalties.
It is important to note that in the last quarter, Eton recorded its 10th straight quarter of sequential product revenue growth, driven by robust demand and record results of Alkindi Sprinkle and Carglumic Acid.
Product sales and royalty revenues are expected to have increased year over year in the to-be-reported quarter, primarily driven by growth in Alkindi Sprinkle and Carglumic Acid tablets.
Eton remains focused on its goal to reach 400 active patients on Alkindi Sprinkle by the end of the year, based on the strong traction of the product in the market.
The strong growth trend in the sales of Carglumic Acid is a result of the recently expanded sales force of the company. Furthermore, the product is also benefiting from the recently launched Betaine Anhydrous, in May, which shares the same prescriber base, resulting in increased interactions with metabolic geneticists.
Betaine Anhydrous is yet to gain traction in the market. The drug, however, has already seen strong adoption by patients in the short time that it has been commercially available.
This trend of increased sales figures for Eton’s products is expected to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for total revenues generated by the company in the to-be-reported quarter is pegged at $6.3 million.
Other Updates
During the third quarter of 2023, the company announced entering into an agreement to acquire a generic version of an ultra-rare disease product, Nitisinone Capsules, from Oakrum Pharma. The acquired product received FDA approval in May 2023 for the treatment of hereditary tyrosinemia type 1 (HT-1) in combination with dietary restriction of tyrosine and phenylalanine.
Eton anticipates the commercial launch of the acquired product in the first quarter of 2024, which will further contribute to the top line. An update regarding the closing of the acquisition deal is expected in the upcoming earnings release.
Additionally, the investors can also expect a regulatory update regarding Eton’s endocrinology candidate, ET-400. ETON had previously reported gearing up to submit a regulatory filing to the FDA for the approval of ET-400 in the fourth quarter of 2023, which is slated to be commercially launched in 2024.
The company expects ET-400 to highly complement its already-marketed product,Alkindi Sprinkle, providing patients with an additional treatment option in endocrine indications.
Earnings Whisper
Our proven model does not conclusively predict an earnings beat for Eton this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Eton has an Earnings ESP of 0.00% as the Zacks Consensus Estimate and the Most Accurate Estimate both stand at a loss of 10 cents.
Zacks Rank: ETON currently carries a Zacks Rank #2.
Eton Pharmaceuticals, Inc. Price and Consensus
Eton Pharmaceuticals, Inc. price-consensus-chart | Eton Pharmaceuticals, Inc. Quote
Stocks to Consider
Here are some stocks in the same industry that have the right combination of elements to beat on earnings this time around:
bluebird bio BLUE has an Earnings ESP of +2.37% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
bluebird’s stock has declined 58.7% year to date. It beat earnings estimates in each of the last four quarters. BLUE has an earnings surprise of 89.60%, on average.
ACADIA Pharmaceuticals ACAD has an Earnings ESP of +6.76% and a Zacks Rank #2.
ACADIA’s stock has increased 39.2% year to date. It beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions. ACAD has an earnings surprise of 20.33%, on average.
Ascendis Pharma ASND has an Earnings ESP of +13.03% and a Zacks Rank #2.
Ascendis’ stock has decreased 26.3% year to date. It beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions. ASND has a negative earnings surprise of 8.64%, on average.
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Eton Pharmaceuticals, Inc. (ETON) : Free Stock Analysis Report
