Epizyme, Inc. EPZM is expected to report its third-quarter 2015 results on Nov 5.
The company has a mixed track record. It beat estimates in two of the last four trailing quarters and missed in the remaining two quarters with a negative average earnings surprise of 15.65%.
Factors Influencing This Quarter
Being a development-stage company, Epizyme does not have any approved product in its portfolio yet. Revenues comprise collaboration revenues only. Hence, investor focus will remain on pipeline updates.
Epizyme’s lead pipeline candidate, tazemetostat, is currently in a phase II five-arm monotherapy study in patients with relapsed or refractory non-Hodgkin lymphoma (NHL). Initial results from this study should be out in mid-2016.
Meanwhile, a phase I study in relapsed or refractory NHL and advanced solid tumors is ongoing. While updated data on patients with advanced solid tumors were presented in September, additional data on patients with NHL will be presented at a medical meeting by year end.
A global phase II study in adults and a global phase I study in children with INI1-negative tumors and synovial sarcoma are scheduled to begin by end of this year.
Earnings Whispers?
Our proven model does not conclusively show that Epizyme 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, 2 or 3 for this to happen. This is not the case here, as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00% since the Most Accurate estimate and the Zacks Consensus Estimate are both a loss of 55 cents.
Zacks Rank: Epizyme carries a Zacks Rank #3 .We caution against stocks with Zacks Ranks #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revision momentum
Other Stocks That Warrant a Look
Here are a few other companies you may want to consider as our model shows that they also have the right combination of elements to post an earnings beat this quarter:
Merrimack Pharmaceuticals, Inc. MACK has an Earnings ESP of +2.44% and carries a Zacks Rank #3. The company is slated to release third-quarter results on Nov 9.
The Earnings ESP for Sarepta Therapeutics, Inc. SRPT is +10.08% and it carries a Zacks Rank #3. The company is expected to release results on Nov 5.
Myriad Genetics, Inc. MYGN has an Earnings ESP of +2.86% and carries a Zacks Rank #2. The company is scheduled to release third-quarter results on Nov 3.
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 >>
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