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What's in the Cards for Zynerba (ZYNE) This Earnings Season?

Zacks Equity Research

In the absence of an approved product, investors’ focus will be on the progress of Zynerba Pharmaceuticals, Inc.’s ZYNE lead pipeline candidate, Zygel, when the company reports third-quarter 2019 results.

The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and met the same once with the average positive surprise being 17.07%.

Shares of Zynerba have surged 273.7% so far this year against the industry‘s decline of 4.2%.


In the last reported quarter, Zynerba’s earnings matched estimates.

Things to Watch Out For

Zynerba is focused on developing cannabinoid therapies for rare neuropsychiatric disorders.

A pivotal study — CONNECT-FX — is evaluating Zygel for treating patients with FXS aged 3 to 17 years. Data from the study presented earlier showed improvement in core emotional and behavioral symptoms of statistical significance. Zynerba expects to report top-line data and submit a new drug application next year. Investors will likely have questions regarding any update on the progress of the study on the company’s third-quarter earnings call.

Moreover, Zynerba is also conducting two open-label phase II studies evaluating Zygel for the treatment of autism spectrum disorder and 22q11.2 deletion syndrome.

These ongoing studies are likely to have driven operating expenses higher in the soon-to-be reported quarter.

Key Development

In September, Zynerba announced positive top-line data from the open-label phase II study, BELIEVE 1, which evaluated Zygen in patients with developmental and epileptic encephalopathies (“DEE”). Data from the study showed that the candidate achieved 44% to 58% monthly median reductions in seizures in DEE patients compared to baseline over treatment duration of two to six months.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Zynerba in this reporting cycle. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here as you will see below.

Earnings ESP: Zynerba’s Earnings ESP is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at a loss of 51 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Although Zynerba’s Zacks Rank #3 increases the predictive power of ESP, its 0.00% ESP makes surprise prediction difficult.

Zynerba Pharmaceuticals, Inc. Price and Consensus


Zynerba Pharmaceuticals, Inc. Price and Consensus

Zynerba Pharmaceuticals, Inc. price-consensus-chart | Zynerba Pharmaceuticals, Inc. Quote

Stocks That Warrant a Look

Here are some stocks from the pharma sector that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.

Amarin Corporation AMRN has an Earnings ESP of +100.00% and a Zacks Rank #3. The company is scheduled to release third-quarter results on Nov 5. You can see the complete list of today’s Zacks #1 Rank stocks here.

Amicus Therapeutics FOLD has an Earnings ESP of +3.98% and a Zacks Rank #2. The company is scheduled to release third-quarter results on Nov 11.

Eyenovia EYEN has an Earnings ESP of +10.51% and a Zacks Rank #2. The company is scheduled to release third-quarter results on Nov 13.

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