Keryx Biopharmaceuticals, Inc. (KERX) is scheduled to report its fourth-quarter and full-year 2014 results on Feb 27, 2015.
Keryx’s track record has been dismal in the first nine months of 2014 with the company reporting wider-than-expected losses in all of the last four quarters. The average earnings miss over the last four quarters is 21.41%. Let’s see how things are shaping up for this announcement.
Factors at Play This Quarter
Keryx’s Auryxia (ferric citrate) is approved for the control of serum phosphorus levels in patients with chronic kidney disease (CKD) on dialysis. The drug was approved by the FDA in Sep 2014 and the company launched it in Dec 2014. The approval was however accompanied with a few warnings.
Keryx is also working on the label expansion of Auryxia. The company has initiated a phase III study on Auryxia for the treatment of iron-deficiency anemia in patients with stages III to V CKD, who have previously not responded to oral iron therapy. The study will enroll 230 patients and evaluate changes in hemoglobin levels as the primary endpoint. Keryx currently expects the study to be completed by 2015 and if successful, plans to file a supplemental new drug application with the FDA in early 2016 for label expansion.
However, apart from Auryxia, Keryx currently has no other approved products. As a result, the company will be solely dependent on Auryxia for growth. Moreover, quite a few limitations and warnings have restricted its sales potential substantially.
Earnings Whispers?
Our proven model does not conclusively show that Keryx is likely to beat estimates this 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) for this to happen. This is not the case here, as you will see below.
Zacks ESP: The Earnings ESP for Keryx is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate both stand at a loss of 37 cents.
Zacks Rank: Keryx carries a Zacks Rank #4 (Sell), We caution against stocks with Zacks Ranks #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.
Stocks You May Consider
Here are some companies you may want to consider as our model shows that they have the right combination of elements.
Amarin Corporation plc (AMRN) has an Earnings ESP of +14.29% and carries a Zacks Rank #2. The company is scheduled to release its fourth-quarter 2014 results on Mar 3.
Mylan (MYL) has an Earnings ESP of +2.89% and carries a Zacks Rank #3. It is expected to report its fourth-quarter results on Mar 2.
The Earnings ESP for Endo International plc (ENDP) is +0.89% and it carries a Zacks Rank #2. The company is scheduled to release its fourth-quarter results on Mar 2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment