Aerie Pharmaceuticals (AERI) Q3 Earnings: Will It Beat?
We expect Aerie Pharmaceuticals, Inc. AERI to beat expectations when it reports third-quarter earnings results on Nov 2 after market close. However Aerie’s performance over the last four quarters has been disappointing. The company reported a wider-than-expected loss thrice in the four trailing quarters, with an average negative earnings surprise of 11.73%.
AERIE PHARMACT Price and EPS Surprise
AERIE PHARMACT Price and EPS Surprise | AERIE PHARMACT Quote
Let’s see how things are shaping up for the company this quarter
Why a Likely Positive Surprise?
Our proven model shows that Aerie is likely to beat on earnings because it has the right combination of the two key ingredients.
Positive Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +8.57%. This is a meaningful indicator of a likely positive surprise. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank #3 (Hold): Note that stocks with a Zacks Rank of #1 (Strong Buy), #2 (Buy) and #3 (Hold) have a significantly higher chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The combination of Aerie’s Zacks Rank #3 and an +8.57% ESP makes us confident in looking for a positive surprise in the upcoming release.
What's Driving the Better-than-Expected Results?
Aerie Pharmaceuticals is a development-stage company focused on the development and commercialization of eye disease therapies, including glaucoma and other eye diseases.
Being a development-stage company, Aerie does not have any approved product in its portfolio yet. Investors are, thus, expected to focus on pipeline updates.
The lead candidate at the company is Rhopressa, a once-daily formulation for lowering intraocular pressure (IOP) in patients suffering from open-angle glaucoma and ocular hypertension
Aerie filed a NDA with the FDA for the drug in Sep 2016.
The results of the first two Phase III registration trials for Rhopressa are included in the filing.
Apart from Rhopressa, Aerie is evaluating Roclatan, a once-daily, quadruple-action fixed-dose combination of Rhopressa and Xalatan.
We believe that operating expenses will continue to be higher in the quarter due to increased activities related to the phase III programs for Rhopressa and Roclatan, as well as preparatory activities associated with commercialization efforts..
Other Stocks to Consider
Here are some health care stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
Infinity Pharmaceuticals, Inc. INFI has an Earnings ESP of +5.81% and carries a Zacks Rank #1. It is expected to report its results on Nov 3.
Ariad Pharmaceuticals Inc. ARIA has an Earnings ESP of +5.26% and carries a Zacks Rank #1. It is scheduled to report its results on Nov 1. You can see the complete list of today’s Zacks #1 Rank stocks here
The Earnings ESP for Aldeyra Therapeutics, Inc. ALDX is +2.44% and it carries a Zacks Rank #2. The company is expected to release results on Nov 10.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
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
ARIAD PHARMA (ARIA): Free Stock Analysis Report
INFINITY PHARMA (INFI): Free Stock Analysis Report
ALDEYRA THERAPT (ALDX): Free Stock Analysis Report
AERIE PHARMACT (AERI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
