Journey Medical (DERM) to Report Q4 Earnings: What's in the Cards?
When Journey Medical DERM reports fourth-quarter 2023 results, investors are expected to focus on the company’s top and bottom-line numbers.
The company has a mixed track record. In the last reported quarter, it posted an earnings surprise of 600%. DERM’s earnings beat estimates in two of the trailing four quarters and missed in the other two, delivering an average surprise of 118.25%.
Journey Medical Corporation Price, Consensus and EPS Surprise
Journey Medical Corporation price-consensus-eps-surprise-chart | Journey Medical Corporation Quote
Factors at Play
Journey Medical is a commercial-stage pharmaceutical company, focused on selling drugs for the treatment of dermatological conditions. The company’s current portfolio includes eight branded and two authorized generic prescription drugs for dermatological conditions that are actively marketed in the United States.
Four core products, Qbrexza, Accutane, Amzeeq and Zilxi, all acquired and launched in 2022, represented approximately 90% of total net product revenues for the third quarter. Increase in net product revenues from Accutane, Amzeeq and Zilxi, due to continued sales and marketing emphasis on these products positively impacted sales in the previous quarter. The trend is likely to have continued in the to-be reported quarter.
R&D expenses might have declined in the to-be reported quarter due to lower DFD-29 expenses as the clinical development activities continue to wind down. SG&A expenses, too, must have decreased as management focuses on expense reduction efforts primarily in sales and marketing.
In the third-quarter earnings release, management stated that the impact of its cost reduction initiatives is expected to have resulted in a reduction of greater than $17.0 million of annual SG&A expenses in 2023, surpassing its earlier target of $12.0 million.
Recent Updates
The company submitted a new drug application to the FDA, seeking approval for DFD-29 (Minocycline Hydrochloride Modified Release Capsules, 40 mg) for the treatment of inflammatory lesions and erythema of rosacea in adults. DFD-29 is being developed in collaboration with Dr. Reddy’s Laboratories Ltd.
Share Price Performance
DERM’s shares have surged 103.9% in the past year against the industry’s decline of 0.9%.
What Our Model Predicts
Our proven model does not conclusively predict an earnings beat for DERM 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. That is not the case here, as you will see below.
Earnings ESP: Earnings ESP for DERM is 0.00%, as the Zacks Consensus Estimate and the Most Accurate Estimate is pegged at a loss of 8 cents per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks to Consider
Here are some drug and biotech 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 reporting cycle.
Apellis Pharmaceuticals APLS has an Earnings ESP of +28.35% and a Zacks Rank #2 at present.
APLS beat on earnings in two of the trailing four quarters and missed in the other two, delivering an average negative surprise of 3.91%. APLS is scheduled to release fourth-quarter 2023 results on Feb 27. You can see the complete list of today’s Zacks #1 Rank stocks here.
Esperion Therapeutics ESPR has an Earnings ESP of +24.53% and a Zacks Rank #2 at present. ESPR is scheduled to release fourth-quarter 2023 results on Feb 27.
ESPR beat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 7.50%.
Celldex Therapeutics CLDX has an Earnings ESP of +9.45% and a Zacks Rank #3 at present.
CLDX beat on earnings in two of the trailing four quarters, met in one and missed in the other, delivering a negative surprise of 3.56%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Celldex Therapeutics, Inc. (CLDX) : Free Stock Analysis Report
Esperion Therapeutics, Inc. (ESPR) : Free Stock Analysis Report
Journey Medical Corporation (DERM) : Free Stock Analysis Report
Apellis Pharmaceuticals, Inc. (APLS) : Free Stock Analysis Report
