Drug Stocks Q1 Earnings Slated on May 11: ACRS, EARS & More

With the Q1 cycle nearing its end, the earnings picture is becoming increasingly clear. While the going looked tough at the onset of the last month, that scenario has changed over the past few weeks. The earnings scorecard, as per our Earnings Trend report, shows that a large number of companies have posted better-than-expected bottom-line numbers for the quarter, thereby lifting investor spirits substantially. The unforeseen number of earnings beats could perhaps be attributed to already lowered investor expectations at the start of the earnings cycle. The recent decline in the U.S. dollar could have also aided matters. Amid an improved commodity-price backdrop, although estimates for the second quarter are still witnessing downward revisions, the decline is not as severe as last quarter.

Notwithstanding headwinds like currency rates, biosimilars and generic competition, the Medical sector has surely put up a positive picture this season. Dissecting the scorecard further, 65.3% of the pharma companies have surpassed both revenues and earnings estimates in the first quarter so far (as of May 6, 2016). Johnson & Johnson JNJ kick-started the earnings season on an encouraging note and quite a few followed suit even though there were laggards like Novartis NVS. Meanwhile, results at the biotech sector have been mixed so far with Amgen AMGN topping expectations while bigwigs like Gilead Sciences GILD disappointing.

There are still quite a few companies that are yet to report results. Let's take a peek at a few drug stocks that will report quarterly results on May 11.

Aclaris Therapeutics, Inc. ACRS, a clinical-stage specialty pharmaceutical company, is scheduled to report first-quarter results on May 11. With its focus on dermatology, this Zacks Rank #3 (Hold) stock's track record has been mixed, as it beat earnings estimates in one of the last two quarters and missed the same in the other. The combination of its Zacks Rank #3 (Hold) and Earnings ESP of 0.00% makes surprise prediction difficult.

Switzerland-based Auris Medical Holding AG EARS is also scheduled to report first-quarter results on May 11. The company is developing therapeutics to address unmet medical needs in otolaryngology. This Zacks Rank #3 stock has a mixed track record, as it beat earnings estimates in two of the last four quarters and missed the same in other two. The combination of its Zacks Rank #3 and Earnings ESP of 0.00% makes surprise prediction difficult.

Bio-Path Holdings, Inc. BPTH is scheduled to report first-quarter results on May 11 as well. Bio-Path's lead candidate, BP1001 (Liposomal Grb2 antisense), is currently in a phase II study for blood cancers. Hence, we expect investor focus on the company's pipeline. This clinical-stage biotechnology company currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00% which makes it difficult for us to predict an earnings beat for this quarter.

Biotie Therapies Corp. BITI is expected to report first-quarter results on May 11. The company is set to be acquired by Acorda Therapeutics, Inc. ACOR. Given the company's dismal track record and the combination of its Zacks Rank #3 and an Earnings ESP of 0.00%, we are uncertain of an earnings surprise this quarter.

Cardiome Pharma Corp. CRME is expected to report first-quarter results on May 11, 2016. The specialty pharmaceutical company primarily focuses on the development and commercialization of cardiovascular therapies that will improve the quality of life and health of patients suffering from heart disease. However, the company has a disappointing track record, having missed estimates in three out of the last four quarters. The combination of its Zacks Rank #3 and Earnings ESP of 0.00% makes surprise prediction difficult.

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