Lantheus (LNTH) to Report Q2 Earnings: What's in the Cards?
Lantheus Holdings, Inc. LNTH is scheduled to release second-quarter 2023 results on Aug 3, before the opening bell.
In the last reported quarter, Lantheus Holdings’ earnings per share (EPS) of $1.47 surpassed the Zacks Consensus Estimate by 13.9%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average being 25.8%.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
On first-quarter 2023 earnings call in May, Lantheus’ management confirmed that it has been continuing to register a robust uptick in sales of both PYLARIFY and DEFINITY. Per management, they continue to have the leading market share in their respective categories.
However, it is worth mentioning that PYLARIFY is an F 18-labelled PSMA-targeted positron emission tomography (PET) imaging agent used with PET or computed tomography, whereas DEFINITY is an injectable ultrasound-enhancing agent used in echocardiography examinations.
The continued favorable adoption of PSMA PET with PYLARIFY is expected to have continued in the second quarter of 2023 on the back of its positive impact of the PSMA-targeted PET imaging on the U.S. prostate cancer community. This is likely to have considerably driven the to-be-reported quarter’s revenues.
Lantheus Holdings, Inc. Price and EPS Surprise
Lantheus Holdings, Inc. price-eps-surprise | Lantheus Holdings, Inc. Quote
On the call, management stated that PYLARIFY and DEFINITY enabled Lantheus to invest in its business to continue to expand its portfolio of commercial and clinical-stage radiopharmaceutical assets, including the recently completed in-licensing of two late-stage radiotherapeutic product candidates from POINT Biopharma and the acquisition of Cerveau Technologies, Inc. for MK-6240 (a second-generation F 18-labeled PET imaging agent that targets Tau tangles in Alzheimer’s disease).
Per management, the company is also making impressive progress with PNT2002 and PNT2003, including in the clinical, regulatory and manufacturing programs as well as advancing commercial readiness. These developments buoy our optimism about Lantheus’ second-quarter performance.
In February, Lantheus acquired Cerveau Technologies, which added MK-6240 to its asset pipeline. Following the buyout, Lantheus has been continuing to advance the utilization of MK-6240 in clinical development partnership. MK-6240 is currently being used in more than 60 academic and industry late-stage clinical trials for Alzheimer's disease therapeutic candidates under development by more than 16 pharmaceutical companies. These look promising for Lantheus.
Lantheus’ DEFINITY, which has been registering strong growth over the past few months, is likely to have been another strong contributor to second-quarter revenues. Management’s observation about DEFINITY being the continued preferred ultrasound-enhancing agent in patient echocardiography exams looks promising for product sales in the second quarter.
In April, Lantheus announced that the FDA had granted Fast Track designation for Lu-PNT2002 for the treatment of metastatic castration-resistant prostate cancer. In February, the company presented positive data regarding the potential benefits of piflufolastat F 18 on decisions on treatment plans. These raise our optimism about the stock.
The Estimate Picture
Our proven model predicts an earnings beat for Lantheus this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Lantheus has an Earnings ESP of +3.40%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Stocks Worth a Look
Here are a few other medical stocks worth considering, as these also have the right combination of elements to beat on earnings this reporting cycle.
AmerisourceBergen Corporation ABC has an Earnings ESP of +0.59% and a Zacks Rank of 2. ABC has an estimated long-term growth rate of 8.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
AmerisourceBergen’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 3.1%.
McKesson Corporation MCK has an Earnings ESP of +1.93% and is a Zacks #2 Rank stock. MCK has an estimated long-term growth rate of 10.9%.
McKesson’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 4.5%.
Becton, Dickinson and Company BDX, popularly known as BD, has an Earnings ESP of +0.48% and a Zacks Rank of 2. BDX has an estimated long-term growth rate of 10.1%.
BD’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 5.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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
Becton, Dickinson and Company (BDX) : Free Stock Analysis Report
AmerisourceBergen Corporation (ABC) : Free Stock Analysis Report
McKesson Corporation (MCK) : Free Stock Analysis Report
Lantheus Holdings, Inc. (LNTH) : Free Stock Analysis Report
