Repros Therapeutics Inc. (RPRX) is expected to report third-quarter 2014 results on Nov 6. Let’s see how things are shaping up for this announcement.
Factors at Play
Last quarter, the company had posted a negative earnings surprise of 2.7%.
Being a clinical-stage biotech company, Repros will continue to face an increase in R&D expenditure.
Since the company does not generate any product revenues yet, investor focus will remain on its pipeline, particularly the status of the new drug application for Androxal, which is slated for submission by year-end.
Androxal is the company’s most advanced candidate and is being developed for secondary hypogonadism. Additionally, Repros may provide an update on Proellex which is in phase II development for the treatment of endometriosis and uterine fibroids.
Currently, Repros is seeking partners for funding its pipeline development activities and commercialization of its products, if approved.
Earnings Whispers?
Our proven model does not conclusively show that Repros is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP (Expected Surprise Prediction) and a Zacks Rank #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 Repros is 0.00% since the Most Accurate Estimate is -$0.39, in line with the Zacks Consensus Estimate.
Zacks Rank #4 (Sell): Repros carries a Zacks Rank #4. Note that stocks with Zacks Rank #1, #2 and #3 have a significantly higher chance of beating earnings estimates. We caution against stocks with Zacks Ranks #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially if the company sees negative estimate revision momentum.
Repros’ Zacks Rank #4 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, i.e., a positive Zacks Earnings ESP and a Zacks Rank #1, #2 or #3.
Hospira, Inc. (HSP) has an Earnings ESP of +5.66% and carries a Zacks Rank #3 (Hold). The company will report third-quarter results on Nov 6 before the market opens.
Mallinckrodt plc (MNK) has an Earnings ESP of +3.73% and holds a Zacks Rank #2 (Buy). The company will report fourth-quarter results on Nov 19 before the market opens.
Prestige Brands Holdings, Inc. (PBH) has an Earnings ESP of +2.22% and holds a Zacks Rank #2 (Buy). The company will report third-quarter results on Nov 6 before the market opens.
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