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OPKO Health (OPK) to Report Q3 Earnings: What's in Store?

Zacks Equity Research
·4 min read

OPKO Health, Inc. OPK is scheduled to release third-quarter 2020 results on Oct 29, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 171.4%.

Q3 Estimates

Currently, the Zacks Consensus Estimate for third-quarter revenues is pegged at $375.3 million, suggesting growth of 64% from the year-ago reported figure. The consensus estimate for earnings stands at 4 cents per share, indicating an improvement of 136.4% from the prior-year quarter.

Factors to Note

Higher revenues from Products segment are likely to get reflected in OPKO Health’s third-quarter revenues.

The company might have benefited from strong performance in RAYALDEE — its leading renal product — in the to-be-reported quarter. Moreover, increase in total RAYALDEE prescriptions may have contributed to the to-be-reported quarter’s performance.

Further, the company’s third-quarter performance is likely to reflect OPKO Health’s BioReference Laboratories’ sustained progress. With respect to COVID-19 response efforts, the company built a specific expertise in offering testing with reasonable turnaround times. BioReference has been chosen to offer testing services by the Centers for Disease Control and Prevention (CDC) to various states, cities and large healthcare systems, multiple drive-throughs around the United States, urgent care centers, and several very important professional sports organizations.

OPKO Health, Inc. Price and EPS Surprise

OPKO Health, Inc. Price and EPS Surprise
OPKO Health, Inc. Price and EPS Surprise

OPKO Health, Inc. price-eps-surprise | OPKO Health, Inc. Quote

Notably, COVID-19 testing was a strong contributor to OPKO Health’s second-quarter growth and profitability. With resurgence in cases, the company anticipates solid demand for COVID-19 tests during third-quarter 2020. Hence, increase in testing volumes is likely to have driven revenues in Services segment.

In May, BioReference Laboratories collaborated with MagnaCare — a division of Brighton Health Plans Solutions, LLC — to offer COVID-19 antibody testing to Labor clients in the New York metropolitan area. With this antibody testing, Labor groups in the area will be able to gather information and take decisions regarding back-to-work procedures and safety measures for the protection of workers and public.

In June, the FDA authorized OPKO Health to undertake a Phase 2 trial with RAYALDEE as a treatment for patients possessing mild-to-moderate COVID-19.

Additionally, the company is planning a Phase 3 study with RAYALDEE and pediatric patients as part of a post-marketing requirement. Irrespective of the ongoing pandemic, OPKO Health showed progress with its pharmaceutical business as the company is on track with respect to Pfizer’s submission of Biologics License Application (BLA) for a human growth hormone product to the FDA in the second half of 2020.

These developments are likely to have positively impacted the company’s performance in the to-be-reported quarter.

Additionally, per management, OPKO Health will continue to make solid investments in R&D programs throughout 2020. The company might have gained from such investments in the quarter to be reported.

What Our Quantitative Model Suggests

Per our proven model, a 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. This is the case here as you will see.

Earnings ESP: OPKO Health has an Earnings ESP of +15.39%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: OPKO Health carries a Zacks Rank #3.

Other Stocks Worth a Look

Here are a some other medical stocks worth considering as these too have the right combination of elements to post an earnings beat this quarter.

Zimmer Biomet Holdings, Inc. ZBH has an Earnings ESP of +4.81% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

GW Pharmaceuticals plc GWPH has an Earnings ESP of +9.65% and a Zacks Rank of 3.

Pacific Biosciences of California, Inc. PACB has an Earnings ESP of +15.39% and a Zacks Rank of 3.

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OPKO Health, Inc. (OPK) : Free Stock Analysis Report
 
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