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Will Progenics (PGNX) Disappoint this Earnings Season?

Zacks Equity Research

Progenics Pharmaceuticals, Inc. (PGNX) is scheduled to report second quarter 2014 results on Aug 8, 2014.

Last quarter, Progenics posted a 15.4% negative surprise. However, on an average, Progenics has posted an 8.50% positive surprise in the last four quarters. Let’s see how things are shaping up for the second quarter.

Factors to Influence Q2 Results

Progenics’ story revolves around Relistor. First quarter results were disappointing on both fronts. Sales of Relistor were hit in the U.S. due to adjustments being made by wholesalers in their inventory level as a result of higher sales achieved in the fourth quarter of 2013.

The decline in Relistor sales is a major cause of concern for Progenics. On a positive note, in Apr 2014, the European Medicines Agency (EMA.TO) accepted Progenics and its partner Salix Pharmaceuticals’ (SLXP) application for Relistor subcutaneous injection for the treatment of patients suffering from opioid-induced constipation with chronic pain.

Earnings Whispers?

Our proven model does not conclusively show that Progenics will beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, #2 or #3 to be able to beat consensus estimates. That is not the case here as you will see below.

Zacks ESP:  The ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate Estimate and Zacks Consensus Estimate currently stand at a loss of 11 cents.

Zacks Rank #3 (Hold): Progenics’ Zacks Rank #3 (Hold) when combined with a 0.00% ESP makes surprise prediction difficult.

We caution against stocks with Zacks Ranks #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some companies you may want to consider as our model shows that these have the right combination of elements:

Myriad Genetics Inc. (MYGN) has an Earnings ESP of +4.35% and a Zacks Rank #1 (Strong Buy). Myriad Genetics will be reporting fiscal fourth quarter 2014 earnings on Aug 12, 2014.

Medtronic, Inc. (MDT) has an Earnings ESP of +1.09% and a Zacks Rank #2 (Buy). Medtronic will be reporting fiscal first quarter 2015 results on Aug 19, 2014.

Read the Full Research Report on MDT
Read the Full Research Report on MYGN
Read the Full Research Report on PGNX
Read the Full Research Report on SLXP


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