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What's in Store for BioSpecifics (BSTC) This Earnings Season?

Zacks Equity Research

Shares of BioSpecifics Technologies Corp. BSTC have increased 9.7% year to date compared with the industry’s growth of 10.9%.

In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate. Moreover, BioSpecifics’ earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, while missed in one, with the average positive surprise being 12.46%.

Let’s see how things are shaping up prior to the announcement of the upcoming quarterly results.

Factors Likely to Impact Q1 Results

BioSpecifics develops collagenase-based therapies. The company markets a first-in-class collagenase-based product, Xiaflex, in the United States, which is marketed as Xiapex in Europe.

The company is witnessing continued growth in the two marketed indications for Xiaflex — Peyronie's Disease and Dupuytren's Contracture. We expect this positive trend to reflect in the first-quarter results.

BioSpecifics announced positive data for Xiaflex [collagenase clostridium histolyticum (CCH)] in two new potential indications in the first quarter. The company announced positive top-line results from phase I study of CCH for the treatment of uterine fibroids in October 2018. Also, BioSpecifics’ partner Endo International Plc. ENDP announced positive data from the phase III studies of CCH for the treatment of cellulite in November 2018. The company intends to use the phase I data for the development of future clinical studies. 

BioSpecifics is taking care of CCH’s development in the uterine fibroids indication and has the right to initiate the development of any new potential indication not licensed by Endo.

Investors’ focus will be on pipeline updates in the first quarter.

What Does the Zacks Model Unveil?

Our proven model does not conclusively show that BioSpecifics will beat on earnings 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: BioSpecifics has an Earnings ESP of 0.0%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently has a Zacks Rank #1, 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.


BioSpecifics Technologies Corp Price and EPS Surprise


BioSpecifics Technologies Corp Price and EPS Surprise | BioSpecifics Technologies Corp 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 this quarter.

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 first-quarter 2019 results on May 3.

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