Can Rigel Pharmaceuticals (RIGL) Beat Q4 Earnings Estimates?
We expect Rigel Pharmaceuticals RIGL to beat expectations when it reports fourth-quarter and full-year 2023 results later this month or early next month. In the last reported quarter, the company delivered an earnings surprise of 57.14%.
Factors to Consider
Rigel Pharmaceuticals’ two commercial products are Tavalisse tablets for the treatment of adult patients with chronic immune thrombocytopenia (“ITP”) who have had an insufficient response to a previous treatment and Rezlidhia (olutasidenib) capsules for treating relapsed or refractory acute myeloid leukemia (“AML”) in patients with an IDH1 mutation.
In January, Rigel Pharmaceuticals announced preliminary fourth-quarter 2023 total revenues of approximately $35.7 million. This included Tavalisse net product sales of $25.7 million, up 17.4% and Rezlidhia net product sales of $3.9 million, up 333% year over year.
Sales of Tavalisse tablets are being driven by demand growth. The company has been witnessing a consistent rise in new patient starts, a trend that continued to boost revenues in the fourth quarter.
Sales of Rezlidhia, which was launched in December 2022, were sluggish initially. However, the company has been working to improve awareness of the product. It seems these efforts have started paying off as sales trends improved in the fourth quarter.
Rigel Pharmaceuticals’ important pipeline candidate is R2891, an investigational, potent, and selective IRAK1/4 inhibitor in a phase I study for treating patients with lower-risk myeloid dysplastic syndrome who are refractory/resistant to prior therapies. Enrollment in the study is ongoing, with preliminary data expected in mid-2024, which could be an important catalyst for the stock. An update is expected on the conference call.
Recent Developments
In January, Rigel Pharmaceuticals announced a collaboration with CONNECT, an international collaborative network of pediatric cancer centers, to conduct a phase II study to evaluate Rezlidhia (olutasidenib) for treating newly diagnosed IDH1-mutant high-grade glioma. In December, Rigel Pharmaceuticals entered into a strategic collaboration with The University of Texas MD Anderson Cancer Center to expand the evaluation of Rezlidhia in acute myeloid leukemia and other hematologic cancers.
Earnings Surprise History
The company’s earnings beat estimates in the last four quarters. The company has a four-quarter earnings surprise of 58.14%, on average.
Rigel Pharmaceuticals, Inc. Price and EPS Surprise
Rigel Pharmaceuticals, Inc. price-eps-surprise | Rigel Pharmaceuticals, Inc. Quote
Rigel Pharmaceuticals’ stock has declined 25.5% in the past year compared with a decrease of 4.4% for the industry.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model predicts an earnings beat for Rigel Pharmaceuticals in the to-be-reported quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely positive surprise. This is the case here, as elaborated below.
Earnings ESP: Rigel Pharmaceuticals’ Earnings ESP is +71.43% as the Most Accurate Estimate is pegged at a loss of 1 cent per share, while the Zacks Consensus Estimate is pegged at a loss of 4 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Rigel Pharmaceuticals has a Zacks Rank #3.
Other Stocks to Consider
Here are some large drug/biotech stocks that also have the right combination of elements to beat on earnings this time around:
Moderna MRNA has an Earnings ESP of +37.55% and a Zacks Rank #3.
Moderna’s stock has declined 47.0% in the past year. Moderna topped earnings estimates in three of the last four quarters while missing in one. MRNA delivered a four-quarter earnings surprise of 31.20%, on average. Moderna is scheduled to release its fourth-quarter results on Feb 22.
Sarepta Therapeutics SRPT has an Earnings ESP of +877.29% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sarepta Therapeutics’ stock has risen 8% in the past year. Sarepta Therapeutics beat earnings estimates in each of the last four quarters. SRPT delivered a four-quarter earnings surprise of 48.67%, on average.
Intellia Therapeutics NTLA has an Earnings ESP of +31.10% and a Zacks Rank #2.
Intellia Therapeutics’ stock has declined 31.3% in the past year. Intellia Therapeutics topped earnings estimates in three of the last four quarters while missing in one. NTLA delivered a four-quarter earnings surprise of 5.04%, on average. Intellia Therapeutics is scheduled to release its fourth-quarter results on Feb 22.
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Moderna, Inc. (MRNA) : Free Stock Analysis Report
Rigel Pharmaceuticals, Inc. (RIGL) : Free Stock Analysis Report
Sarepta Therapeutics, Inc. (SRPT) : Free Stock Analysis Report
Intellia Therapeutics, Inc. (NTLA) : Free Stock Analysis Report
