Agenus Inc. (AGEN) is expected to report its third quarter 2014 results on Oct 23. Last quarter, the company had posted a negative surprise of 9.09%. Let’s see how things are shaping up for this announcement.
Factors at Play
Agenus posted positive surprises in three of the last four quarters with an average beat of 35.47%. However, things are not looking good since the second quarter. Although Agenus’ revenues increased to $3.1 million in the second quarter from $0.8 million in the year-ago quarter, its bottom-line results were affected by increased operating expenses. The trend is expected to continue in the third quarter as well.
Both the company’s research and development and general and administrative expenses are expected to climb this quarter. The reason for the rise in research and development expenses is because Agenus is investing heavily in its pipeline. The company has several pipleline candidates – prophage autologous (phase II, cancer vaccine) and herpV (phase II, herpes simplex virus-2).
Earnings Whispers?
Our proven model does not conclusively show that Agenus is likely to beat its bottom-line estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here as you will see below.
Zacks ESP: The Earnings ESP for Agenus is 0.00% since the Most Accurate Estimate stands at a loss of 16 cents per share, in line with the Zacks Consensus Estimate.
Zacks Rank #3 (Hold): Agenus’ Zacks Rank #3 when combined with a 0.00% ESP makes surprise prediction difficult.
Other Stocks to Consider
Here are some companies you may want to consider as our model shows that they have the right combination of elements –- a positive Zacks Earnings ESP and a Zacks Rank #1, 2 or 3 –- to post an earnings beat this quarter.
Teva Pharmaceutical Industries Limited (TEVA) has an earnings ESP of +5.79% and carries a Zacks Rank #2 (Buy). It is scheduled to report its third-quarter results on Oct 30.
The earnings ESP for Ligand Pharmaceuticals Inc. (LGND) is +30.00% and it carries a Zacks Rank #1 (Strong Buy). The company is scheduled to release its third-quarter results on Oct 27.
Vertex Pharmaceuticals Incorporated (VRTX) has an earnings ESP of +28.07% and carries a Zacks Rank #2. It is scheduled to report its third-quarter results on Oct 28.
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