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What's in Store for Ironwood (IRWD) This Earnings Season?

Zacks Equity Research

Ironwood Pharmaceuticals, Inc. IRWD is scheduled to report fourth-quarter 2019 results on Feb 13, before market open. In the last reported quarter, the company delivered a positive surprise of 300.0%.

Shares of the company have lost 9.8% in the past year while the industry witnessed no movement during the period.

Ironwood Pharma’s earnings performance has been mixed over the trailing four quarters. The company beat expectations in three of the last four quarters, while missing the same once. The trailing four-quarter positive earnings surprise is 135.01%, on average.

Let’s see how things have shaped up prior to this announcement.

Factors to Note

We expect continued demand for Ironwood Pharma’s sole marketed drug, Linzess (linaclotide), to have driven revenues in fourth-quarter 2019. Please note that Ironwood and Allergan AGN equally share Linzess’ brand collaboration profits or losses. On its third-quarter earnings call, the company raised its guidance for total revenues to the range of $410-$420 million for full-year 2019.

Linzess is currently approved as a treatment for irritable bowel syndrome with constipation (IBS-C) and chronic idiopathic constipation.

The company has an agreement with AstraZeneca AZN and Japan-based Astellas Pharma for commercialization of Linzess in China and Japan, respectively. Ironwood Pharma receives royalties on sales of the drug in these territories. Demand for Linzess in Japan and a potential launch in China may have brought in additional royalties for the company.

Ironwood Pharma is currently developing Linzess for treating multiple abdominal symptoms in adult patients with IBS-C. Apart from Linzess, the company has two key pipeline candidates – MD-7246, a delayed-release formulation of linaclotide, and IW-3718. Investors are likely to watch for any new developmental updates on these candidates or Linzess on the fourth quarter earnings call.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Ironwood Pharmathis season. 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’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Ironwood Pharma’s Earnings ESP is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at earnings of 22 cents.

Zacks Rank: Ironwood Pharma currently carries a Zacks Rank #3.

Ironwood Pharmaceuticals, Inc. Price and Consensus

 

Ironwood Pharmaceuticals, Inc. Price and Consensus

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

A Stock That Warrants a Look

Here is a biotech stock that you may want to consider, as our model shows that it has the right combination of elements to deliver an earnings beat in its upcoming release.

Karyopharm Therapeutics Inc. KPTI has an Earnings ESP of +3.05% and a Zacks Rank #3. The company is scheduled to release fourth-quarter results on Feb 27. You can see the complete list of today’s Zacks #1 Rank stocks here.

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Ironwood Pharmaceuticals, Inc. (IRWD) : Free Stock Analysis Report
 
AstraZeneca PLC (AZN) : Free Stock Analysis Report
 
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