Lantheus (LNTH) to Report Q4 Earnings: What's in the Cards?
Lantheus Holdings, Inc. LNTH is scheduled to release fourth-quarter 2023 results on Feb 22, before the opening bell.
In the last reported quarter, Lantheus Holdings’ earnings per share of $1.47 surpassed the Zacks Consensus Estimate by 11.4%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average being 20.9%.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
On third-quarter 2023 earnings call in November, Lantheus’ management confirmed that it has been continuing to register a robust uptick in sales of both PYLARIFY and DEFINITY. Per management, they maintained their strong momentum during the quarter and are expected to continue it in the fourth quarter of 2023.
The continued favorable adoption of PSMA positron emission tomography (PET) with PYLARIFY is expected to have continued in the fourth 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 fourth-quarter revenues.
It is worth mentioning that PYLARIFY is an F 18-labelled PSMA-targeted 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 (which was granted Fast Track designation by the FDA), to have maintained its momentum in the to-be-reported quarter.
Management has also been witnessing positive developments for MK-6240. During the third quarter, Lantheus signed agreements with four prominent pharmaceutical companies to provide MK-6240 as a biomarker. With these additional agreements, MK-6240 is now being used in more than 90 active clinical trials. This raises our optimism about its fourth-quarter performance.
On the third-quarter earnings call, management’s statement that DEFINITY maintained its strong momentum with strong third-quarter sales was encouraging. Management also expected that increasing procedure volumes and its promotional efforts to enable sustainable growth will likely help sustain Lantheus’ momentum. This looks promising for the company’s fourth-quarter results.
Lantheus Holdings, Inc. Price and EPS Surprise
Lantheus Holdings, Inc. price-eps-surprise | Lantheus Holdings, Inc. Quote
Lantheus’ Precision Diagnostics product category (which includes commercial products like DEFINITY and TechneLite, among others) recorded robust sales in the third 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 revenues.
Lantheus is working closely with its partner, POINT Biopharma Global Inc., to make progress with respect to PNT2002 across clinical and regulatory manufacturing and commercial readiness work streams, including establishing an expanded access program. In December 2023, Lantheus and POINT Biopharma announced favorable top-line results from the pivotal Phase 3 SPLASH study evaluating the efficacy and safety of PNT2002 in patients with metastatic castration-resistant prostate cancer after progression on an androgen receptor pathway inhibitor. The company may provide an update on the regulatory pathway for the candidate on its fourth-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 -1.35%. 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 #2.
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.
Esperion Therapeutics, Inc. ESPR has an Earnings ESP of +24.53% and a Zacks Rank of 2. ESPR has an estimated long-term growth rate of 46.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Esperion’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 7.5%.
Moleculin Biotech, Inc. MBRX has an Earnings ESP of +5.00% and is a Zacks #2 Rank stock. MBRX has an estimated growth rate of 20.7% for 2024.
Moleculin Biotech’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 10.1%.
Ardelyx, Inc. ARDX has an Earnings ESP of +9.80% and a Zacks Rank of 2. ARDX has a growth rate of 18.5% for 2024.
Ardelyx’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 160.6%.
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Esperion Therapeutics, Inc. (ESPR) : Free Stock Analysis Report
Ardelyx, Inc. (ARDX) : Free Stock Analysis Report
Lantheus Holdings, Inc. (LNTH) : Free Stock Analysis Report
Moleculin Biotech, Inc. (MBRX) : Free Stock Analysis Report
