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What's in Store for Avenue Therapeutics (ATXI) in Q2 Earnings?

With no marketed product, investors’ focus will likely be on commercialization plan for Avenue Therapeutics, Inc. ATXI pain candidate, tramadol, when the company reports second-quarter 2020 results. In the last-reported quarter, the company delivered an earnings surprise of 52.94%.

The company’s earnings history is encouraging, with the average surprise in the last four quarters being 44.58%.

Avenue Therapeutics’ stock has risen 6.1% so far this year against the industry’s decline of 6.5%.

Factors to Note

Avenue Therapeutics is a clinical-stage biopharmaceutical company developing product principally for use in the acute/intensive care hospital setting. The company’s sole pipeline candidate, intravenous tramadol, is under review for the treatment of moderate to moderately severe post-operative pain. Since the company does not have any approved product in its candidate, the focus will be on pipeline updates when it reports second-quarter results.

The company has completed two late-stage studies evaluating tramadol in patients with moderate-to-severe pain following bunionectomy or abdominoplasty in the last two years and submitted a new drug application in December 2019. The NDA was accepted by the FDA in February and a decision is expected in October.

With successful completion of late-stage studies and a NDA submission for its sole pipeline candidate, clinical activities have declined for the company. Research & development (R&D) expenses are likely to have declined during the second quarter. However, commercialization plans following a potential approval to tramadol might have increased general and administrative expenses, offsetting a decline in R&D expenses.

We expect the company to provide update related to its commercialization plans for tramadol on its second-quarter earnings call.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Avenue Therapeutics this time around. 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. Unfortunately, that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: Earnings ESP for Avenue Therapeutics is 0.00%, as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 10 cents per share.

Zacks Rank: The company currently carries a Zacks Rank of 3.

Avenue Therapeutics, Inc. Price and Consensus

Avenue Therapeutics, Inc. Price and Consensus
Avenue Therapeutics, Inc. Price and Consensus

Avenue Therapeutics, Inc. price-consensus-chart | Avenue Therapeutics, Inc. Quote

Stocks to Consider

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.

AcelRx Pharmaceuticals, Inc. ACRX has an Earnings ESP of +40.74% and carries a Zacks Rank #3, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Translate Bio, Inc. TBIO has an Earnings ESP of +5.26% and holds a Zacks Rank of 2.

Pacira BioSciences, Inc. PCRX has an Earnings ESP of +28.42% and carries a Zacks Rank of 2.

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