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What's in Cards for Cumberland (CPIX) This Earnings Season?

Zacks Equity Research

Cumberland Pharmaceuticals Inc. CPIX is expected to release first-quarter 2019 results soon.

Shares of Cumberland have declined 8.3% year to date against the industry’s growth of 11%.

In the last reported quarter, the company had a positive earnings surprise of 162.50%. Moreover, Cumberland has surpassed earnings estimates in three of the trailing four quarters, the average negative surprise being 0.33%.

Let’s see how things are shaping up prior to the announcement of the upcoming first-quarter 2019 results.

Factors Likely to Impact Q1 Results

Cumberland a specialty pharmaceutical company focused on the acquisition, development and commercialization of branded prescription products. Following the company's acquisition of Vibativfrom Theravance Biopharma in late 2018, its commercial portfolio now includes eight FDA-approved brands.

In 2018, Cumberland submitted an application to the FDA for the approval of its next generation Caldolor product. After a series of interactions with the FDA and amendments to the application, the company was subsequently notified of the product's FDA approval in early 2019. We expect to get updates on the launch of the product during the release of the first-quarter results.

Cumberland continues to advance its pipeline candidates, which includes several new product candidates in phase II studies. The company completed study enrollment for Portaban, its portal hypertension clinical program. Initial review of the data from the study shows ifetroban to be safe and well tolerated, with no unexpected safety findings. Cumberland also continues to advance its Vasculan and Boxaban pipeline prodcuts, with patient enrollment progressing in each of the phase II studies. We expect the company to provide updates on these candidates in the first quarter.

As a result of the Vibativ acquisition, Cumberland inherited a new group of firms, who have licenses to that brand for international markets. The total number of the company's existing international partners now numbers seventeen. The group includes those with rights to Cumberland products in other countries as well as those who have licensed products to the company for the U.S. market. During the first-quarter conference call, the company should provide updates on the capabilities, status and potential of each partner.

What Does the Zacks Model Unveil?

Our proven model does not conclusively show an earnings beat for Cumberland in the to-be-reported quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates. But that is not the case here, as you will see below.

Earnings ESP: Cumberland has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Cumberland Pharmaceuticals Inc. Price and EPS Surprise

 

Cumberland Pharmaceuticals Inc. Price and EPS Surprise | Cumberland Pharmaceuticals Inc. Quote

Zacks Rank: The company currently has a Zacks Rank #3, which increases the predictive power of ESP. However, we need to have a positive Earnings ESP to be confident of an earnings beat.

Note that Sell-rated stocks (Zacks Rank #4 or 5) going into an earnings announcement are best avoided.

Stocks That Warrant a Look

Here are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.

Horizon Pharma plc HZNP is scheduled to report first-quarter 2019 results on May 8. The company has an Earnings ESP of +25.00% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Inovio Pharmaceuticals, Inc. INO is scheduled to report first-quarter 2019 results on May 9. The company has an Earnings ESP of +13.79% and a Zacks Rank of 3.

Genmab A/S GNMSF is scheduled to report first-quarter 2019 results on May 8. The company has an Earnings ESP of +80.95% and a Zacks Rank of 1.

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