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Catalyst (CPRX) to Report Q3 Earnings: What's in the Cards?

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Catalyst Pharmaceuticals Inc. (CPRX - Free Report) is scheduled to report third-quarter 2020 results on Nov 9, after market close.

The company has a mixed earnings surprise history, surpassing expectations in three of the trailing four quarters while missing in one. The average earnings surprise was 4.89%. In the last reported quarter, the company delivered an earnings surprise of 34.85%.

The Zacks Consensus earnings estimate for the third quarter is 9 cents per share and the estimate for revenue is $31.22 million.

Shares of Catalyst have decreased 17.4% in the year so far against the industry’s decline of 10%.

Let's see how things are shaping up for this announcement.

Factors to Consider

Catalyst’s revenues came entirely from sales of Firdapse, its first-approved drug for the treatment of Lambert-Eaton myasthenic syndrome (LEMS). The company saw an improvement in new LEMS patient enrolments in Catalyst Pathways during the second quarter and the trend is likely to have continued in the third quarter.

In August 2020, Health Canada approved the marketing authorization for Firdapse for treating LEMS Patients. This might have led to incremental sales in the third quarter.

The operating expenses have likely increased dueto the pre-commercialization activities of Firdapse in Canada.

Apart from LEMS, Catalyst is working on developing Firdapse for additional indications. It is being evaluated for the treatment of anti-MuSK antibody positive myasthenia gravis(MuSK-MG). Firdapse is also being evaluated in a proof-of-concept study for the treatment of spinal muscular atrophy (SMA) type 3 patients. Top-line results from this study are expected before the end of 2020.Investigator studies for two additional neuromuscular indications are expected to commence in late 2020. We expect the company to provide an update on the same when it reports third-quarter results.

What Our Model Indicates

Our proven model does not conclusively predict an earnings beat for Catalyst this season. 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: Catalyst has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

 

 

Stocks to Consider

Here are some biotech stocks that have the right mix of elements to beat on earnings this time around:

bluebird Inc. (BLUE - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Axcella Health Inc. has an Earnings ESP of +10.90% and a Zacks Rank of 3.

Ascendis Pharma Inc. (ASND - Free Report) has an Earnings ESP of +13.54% and is Zacks #3 Ranked.

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