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What's in Store for ANI Pharmaceuticals (ANIP) Q1 Earnings?

Zacks Equity Research

ANI Pharmaceuticals Inc. ANIP is gearing up to report first-quarter 2019 results.

The company has surpassed expectations in three of the previous four quarters, the average positive earnings surprise being 2.30%.

ANI Pharmaceuticals’ stock has surged 57.5% compared with the industry’s growth of 4.8% year to date.

 Let's see how things are shaping up for this announcement.

Factors to Consider

ANI Pharmaceuticals is a specialty pharmaceutical company that develops, manufactures, and markets high quality branded and generic prescription pharmaceuticals.

The newly launched branded and generic products are likely to have a positive impact on the company’s revenues in the first quarter.

Contract manufacturing revenues are expected to increase in the first quarter, driven by the performance of its Canadian subsidiary, ANI Pharmaceuticals Canada Inc. Through this subsidiary, ANI Pharmaceuticalsacquired WellSpring Pharma Services Inc., a Canadian company located in Oakville, Ontario, that performs contract development and manufacturing of pharmaceutical products, in August 2018. The company continues to integrate its new Canadian operations and is working to use the facility for the tech transfer of several of its pipeline products and grow its contract manufacturing business platform.

The first-quarter results are likely to reflect royalties from Gilead’s GILD Yescarta sales, impact of product development services and laboratory services revenues from ANI Canada subsidiary.

What Our Model Indicates

Our proven model does not conclusively show that ANI Pharmaceuticalsis likely to beat on earnings in the to-be-reported quarter. This is because the 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: ANI Pharmaceuticalshas 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.

Zacks Rank: The company carries 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.

ANI Pharmaceuticals, Inc. Price and EPS Surprise

ANI Pharmaceuticals, Inc. Price and EPS Surprise | ANI Pharmaceuticals, Inc. Quote

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 in the quarter to be reported.

Glaxo SmithKline plc. GSK has an Earnings ESP of +3.55% and a Zacks Rank #3. The company is scheduled to release first-quarter 2019 results on May 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Novo Nordisk A/S NVO has an Earnings ESP of +0.80% and a Zacks Rank #3. The company is scheduled to release its first-quarter 2019 results on May 3.

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