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Investors’ focus will likely be on developments related to Cumberland Pharmaceuticals Inc.’s (NASDAQ:CPIX) pipeline candidates, RediTrex and Caldolor, when the company reports third-quarter 2019 results.
The company’s earnings beat the Zacks Consensus Estimate in all the last four quarters with the average positive surprise being 119.76%.
Shares of Cumberland Pharmaceuticals have decreased 7.7% so far this year compared with the industry‘s increase of 4.6%.
In the last reported quarter, Cumberland Pharmaceuticals delivered a positive earnings surprise of 42.86%.
Things to Watch For
Cumberland Pharmaceuticals is focused on developing and commercializing branded prescription drugs targeting hospital acute care, gastroenterology, and oncology supportive care.
The company’s revenues were solid in the second quarter led by strong growth of antibiotic Vibativ, which more than offset loss of sales for Vaprisol and Ethyol. We note that Vibativ was acquired from Theravance Biopharma (NASDAQ:TBPH) in October 2018. We expect Vibativ’s solid performance to have continued in the third quarter. Vaprisol has been supply issues for quite some time now.
Meanwhile, the company has several pipeline candidates, which are being evaluated in mid-stage studies targeting different indications including liver and autoimmune diseases among others. These ongoing studies are likely to have driven operating expenses higher in the soon-to-be reported quarter.
The company had submitted a new drug application in January 2019 seeking approval for RediTrex (methotrexate) injection as a treatment for active rheumatoid, juvenile idiopathic and severe psoriatic arthritis, as well as severe disabling psoriasis. A regulatory application for Caldolor injection to include new geriatric, shortened infusion, pediatric, and safety data in its label was submitted in the second quarter. Investors are likely to keep an eye on any regulatory updates regarding these abovementioned applications in the announcement.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Cumberland Pharmaceuticalsin this reporting cycle. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here as you will see below.
Earnings ESP: Cumberland Pharmaceuticals’ Earnings ESP is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 11 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Although Cumberland Pharmaceuticals Zacks Rank #3 increases the predictive power of ESP, its 0.00% ESP makes surprise prediction difficult.
Stocks That Warrant a Look
Here are some pharma stocks that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.
Amicus Therapeutics (NASDAQ:FOLD) has an Earnings ESP of +3.98% and a Zacks Rank #2. The company is scheduled to release third-quarter results on Nov 11. You can see the complete list of today’s Zacks #1 Rank stocks here.
Eyenovia (NASDAQ:EYEN) has an Earnings ESP of +10.51% and a Zacks Rank #2. The company is scheduled to release third-quarter results on Nov 13.
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