Lantheus (LNTH) to Report Q3 Earnings: What's in the Cards?
Lantheus Holdings, Inc. LNTH is scheduled to release third-quarter 2023 results on Nov 2, before the opening bell.
In the last reported quarter, Lantheus earnings per share (EPS) of $1.54 surpassed the Zacks Consensus Estimate by 15.8%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average being 22.9%.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
On second-quarter 2023 earnings call in August, 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.
The continued favorable adoption of PSMA PET with PYLARIFY is expected to have continued in the third 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 third-quarter revenues.
Lantheus Holdings, Inc. Price and EPS Surprise
Lantheus Holdings, Inc. price-eps-surprise | Lantheus Holdings, Inc. Quote
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. Management also expects its F-18 labeled PET diagnostic imaging agent targeting tau-tangles for Alzheimer's disease, MK-6240, to have maintained its momentum in the to-be-reported quarter.
On the second-quarter earnings call, management’s statement that DEFINITY maintained its strong momentum with strong second-quarter sales was encouraging. Management believed that an increase in overall health system procedure volume as patients’ visits continued to rebound in the post-pandemic environment contributed to year-over-year growth. Management expects these trends, combined with its sustained focus on educational programs and promotional efforts, to help sustain Lantheus’ momentum in the second half of the year. This looks promising for the company’s third-quarter results.
Lantheus’ Precision Diagnostics product category (which includes commercial products like DEFINITY and TechneLite, among others) had recorded robust sales in the second quarter of 2023. This was primarily driven by strength in DEFINITY and TechneLite (mainly resulting from the realization of opportunistic sales in the quarter). This momentum is likely to have continued in the to-be-reported quarter, thus significantly driving up the revenues.
On the second-quarter earnings call, management stated that Lantheus has been working closely with its partner, POINT Biopharma, to make progress with respect to PNT2002 across research and development, supply chain, manufacturing and commercial readiness. These developments buoy our optimism about Lantheus’ third-quarter performance.
On the second-quarter earnings call, Lantheus’ management stated that its PSMA PET imaging agent will soon be available to prostate cancer patients in Europe. Its European partner, Curium, announced in July that they have received marketing authorization from the European Commission. We expect the company to provide more details during the third-quarter earnings call.
The Estimate Picture
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has higher chances of beating estimates. This is not the case here, as you can see below.
Earnings ESP: Lantheus has an Earnings ESP of 0.00%. 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 #4 (Sell).
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.
Insulet Corporation PODD has an Earnings ESP of +6.61% and a Zacks Rank of 2. PODD has an estimated long-term growth rate of 41.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Insulet’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 126.9%.
Shockwave Medical, Inc. SWAV has an Earnings ESP of +6.07% and is a Zacks #1 Rank stock. SWAV has an estimated long-term growth rate of 4.6%.
Shockwave Medical’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 81.1%.
Monte Rosa Therapeutics, Inc. GLUE has an Earnings ESP of +1.33% and a Zacks Rank of 2. GLUE has a growth rate of 1.4% for 2024.
Monte Rosa’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 3.8%.
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Insulet Corporation (PODD) : Free Stock Analysis Report
Lantheus Holdings, Inc. (LNTH) : Free Stock Analysis Report
ShockWave Medical, Inc. (SWAV) : Free Stock Analysis Report
Monte Rosa Therapeutics, Inc. (GLUE) : Free Stock Analysis Report
