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What's in the Cards for Sesen Bio's (SESN) Q2 Earnings?

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Sesen Bio is expected to provide an update on its restructuring and strategic initiatives when it reports second-quarter 2022 results

The late-stage clinical company beat earnings expectations in three of the trailing four quarters while missing the same once. The company delivered a four-quarter earnings surprise of 69.94%, on average. In the last reported quarter, the company delivered an earnings surprise of 100%.

SESEN BIO, INC. Price, Consensus and EPS Surprise

 

SESEN BIO, INC. Price, Consensus and EPS Surprise

SESEN BIO, INC. price-consensus-eps-surprise-chart | SESEN BIO, INC. Quote

 

Shares of Sesen Bio have declined 20.5% compared to the industry’s fall of 21%.

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Image Source: Zacks Investment Research

Let’s see how things have shaped up for the quarter to be reported.

Factors to Consider

Sesen Bio does not have any marketed drugs in its portfolio. Hence the company will focus on updates on its pipeline at the second-quarter conference call

Sesen Bio’s lead pipeline candidate was Vicineum (VB4-845), being developed for Bacille Calmette-Guérin (BCG)-unresponsive non-muscle invasive bladder cancer (NMIBC).

In August 2021, the FDA issued a complete response letter (CRL) to Sesen’s biologics license application (BLA) for Vicineum for treatment of NMIBC in its present form.

After a meeting with the FDA, Sesen decided to conduct an additional phase III study to support a potential resubmission of the BLA. Sesen has had four productive meetings with the FDA since August 2021.

However, earlier this month, Sesen Bio voluntarily paused the U.S development of Vicineum to preserve cash. In this month, the company revealed its plans to put a hold on the study until it finds a partner to fund the costs of the Vicineum phase III study.

In May, the company stated it is looking for a merger, acquisition or strategic partnership and the licensing, sale or divesture of some of its proprietary technologies to fund costs for the phase III study of Vicineum. An update is expected at the second-quarter conference call.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Sesen Bio this time around. The combination of a positive Earnings ESPand 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.

Earnings ESP: Sesen Bio’s Earnings ESP is 0.00%, as both the Zacks Consensus Estimate and the Most Accurate Estimate stand at a loss of 13 cents per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: Sesen Bio currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some stocks in the same sector worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

BeiGene (BGNE - Free Report) has an Earnings ESP of +12.09% and a Zacks Rank of 2 at present.

Shares of BeiGene have fallen 34.6% year to date. Earnings of BGNE beat earnings estimates in all the last four quarters, witnessing a negative surprise of 13.98%, on average.

BioNTech (BNTX - Free Report) has an Earnings ESP of +1.99% and a Zacks Rank of 2 at present.

Shares of BioNTech have declined 37.4% year to date. Earnings of BNTX beat earnings estimates in all the last four quarters, witnessing a surprise of 56.87%, on average.

Repligen (RGEN - Free Report) has an Earnings ESP of +4.79% and a Zacks Rank of 2 at present.

Shares of Repligen have declined 23.7% in the year-to-date period. Earnings of RGEN beat earnings estimates in all the last four quarters, witnessing a surprise of 30.84%, on average.

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