Rockwell Medical (RMTI) to Post Q2 Earnings: What's in Store?
Rockwell Medical, Inc. RMTI is scheduled to release second-quarter 2023 results on Aug 14, before the opening bell.
In the last reported quarter, the company’s loss per share of 10 cents was narrower than the Zacks Consensus Estimate of a loss of 18 cents. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on three occasions and lagged once, delivering an earnings surprise of 30.4%, on average.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
In the first-quarter 2023 earnings release, Rockwell Medical’s management stated that its quarterly results have highlighted its progress toward its new strategy and business plan, announced in 2022. Management believes that its first-quarter performance and a few notable announcements made in the second quarter (like reducing operating expenses) are likely to have enabled Rockwell Medical to continue to make significant progress toward these goals and objectives. This raises our optimism about the company’s performance in the second quarter of 2023.
Effective Jan 1, 2023, Rockwell Medical assumed complete commercial responsibility for Baxter International Inc.’s BAX customers. These customers were previously serviced under an exclusive distribution agreement terminated on Nov 9, 2022, when Rockwell Medical announced that it is reacquiring its distribution rights to its hemodialysis concentrates products from Baxter.
Rockwell Medical’s management confirmed that the majority of Baxter’s customers have transitioned successfully to its platform and are actively buying products. Rockwell Medical has been benefiting due to these changes and expects to realize the full impact of these actions during the second quarter of 2023 and beyond. This looks promising for the stock as it is likely to have contributed to its to-be-reported quarter’s revenues.
Rockwell Medical, Inc. Price and EPS Surprise
Rockwell Medical, Inc. price-eps-surprise | Rockwell Medical, Inc. Quote
Rockwell Medical currently sells its hemodialysis concentrates products in various countries throughout North America, South America, Asia and Africa. In May, it expanded its geographic footprint by entering a long-term supply agreement with Global Medical Supply Chain LLC to begin selling its hemodialysis concentrates products in the United Arab Emirates. This looks promising for the stock.
In July, Rockwell Medical acquired the hemodialysis concentrates business from Evoqua Water Technologies, which includes all contracts, intellectual property, the FDA’s 510(k) clearances and assets primarily associated with, and related to, Evoqua's concentrates business nationwide, including liquid and powder bicarbonate and liquid acid. In June, Rockwell Medical entered into a three-year co-promotion services agreement with B. Braun Medical Inc. These raise our optimism about Rockwell Medical.
Rockwell Medical continued to reduce its operating expenses during the first quarter of 2023 by focusing on enhanced business performance and more efficient manufacturing processes. This had enabled it to narrow its operating loss during the reported quarter. We expect that the company has continued with its cost reduction strategy in the second quarter, thereby boosting its results in the to-be-reported quarter.
Another notable announcement by Rockwell Medical was its international partner, Drogsan Pharmaceuticals, submitting a Marketing Authorization application and GMP application for Triferic AVNU to the Turkish Medicines and Medical Devices Agency (April).
The Estimate Picture
For second-quarter 2023, the Zacks Consensus Estimate of $18.1 million for total revenues calls for a decline of 3.2% from the prior-year reported figure.
The consensus estimate for loss per share is pegged at 12 cents.
What Our Model Suggests
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: Rockwell Medical 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 #2.
Stocks Worth a Look
Here are a couple of stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Patterson Companies, Inc. PDCO has an Earnings ESP of +5.66% and a Zacks Rank of 1. PDCO has an estimated long-term growth rate of 9.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Patterson Companies’ earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 4.5%.
The TJX Companies, Inc. TJX has an Earnings ESP of +2.63% and a Zacks Rank of 2. TJX has an estimated long-term growth rate of 10.5%.
TJX Companies’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 4.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Rockwell Medical, Inc. (RMTI) : Free Stock Analysis Report
