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Juno Therapeutics (JUNO) Q4 Earnings: What's in the Cards?
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Juno Therapeutics Inc. is set to report fourth-quarter 2016 results on Mar 1, after the market closes.
Juno’s shares have outperformed the Zacks classified Medical-Biomedical and Genetics industry, year to date. Shares of the company gained 22.3% so far this year, while the industry recorded an increase of 6.5%.
The company has had a mixed track record. It posted negative surprises in two of the last four quarters, beat expectations in one and met estimates in one. The average negative earnings surprise in the last four quarters was 9%. Last quarter, the company delivered a positive earnings surprise of 9.38%.
With no approved products in its portfolio, Juno does not generate any product revenues yet. Hence, investor focus will primarily be on the company’s cash burn and pipeline updates.
Juno is developing cell-based cancer immunotherapies based on CAR and high-affinity TCR technologies. This therapeutic area is rapidly gaining popularity and has huge commercial potential.
In Jul 2016, the FDA placed a clinical hold on the company’s phase II study (ROCKET) evaluating its lead pipeline candidate, JCAR015, in adult patients with relapsed or refractory B cell acute lymphoblastic leukemia (r/r ALL). The hold was placed after two patients died within a week due to severe neurotoxicity following the addition of fludarabine to the pre-conditioning regimen. Though the hold was lifted a week later and the study resumed under a revised protocol, the company voluntarily placed the study on hold in Nov 2016, and is presently working with the FDA and a Safety Monitoring Board to determine future steps.
In Dec 2016, Juno Therapeutics and its partner Celgene Corporation announced that the FDA has granted Breakthrough Therapy designation to their investigational candidate, JCAR017, for the treatment of relapsed/refractory (r/r) aggressive large B-cell non-Hodgkin lymphoma (NHL), including diffuse large B-cell lymphoma (DLBCL) and Primary Mediastinal B-cell Lymphoma (PMBCL).
Further, the candidate was granted Priority Medicines (PRIME) eligibility for r/r DLBCL by the European Medicines Agency (EMA).
In Dec 2016, Juno Therapeutics announced encouraging preliminary clinical data from a phase I study (TRANSCEND) on JCAR017 for the treatment of patients with r/r aggressive NHL at ASH meeting.
We note that at the time of releasing its third-quarter results, Juno had revealed its expectatiton of cash burn of $220–$250 million in 2016.
Earnings Whispers
Our proven model does not conclusively show that Juno is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +20.64%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Juno Therapeutics currently carries a Zacks Rank #4. As it is, we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement.
Stocks That Warrant a Look
Here are a couple of health care stocks that you may want to consider, as our model shows that this have the right combination of elements to post an earnings beat this quarter.
Exelixis, Inc. (EXEL - Free Report) has an Earnings ESP of +200% and a Zacks Rank #2. The company is expected to release fourth quarter results on Feb 27.
Zacks' Top 10 Stocks for 2017
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Juno Therapeutics (JUNO) Q4 Earnings: What's in the Cards?
Juno Therapeutics Inc. is set to report fourth-quarter 2016 results on Mar 1, after the market closes.
Juno’s shares have outperformed the Zacks classified Medical-Biomedical and Genetics industry, year to date. Shares of the company gained 22.3% so far this year, while the industry recorded an increase of 6.5%.
The company has had a mixed track record. It posted negative surprises in two of the last four quarters, beat expectations in one and met estimates in one. The average negative earnings surprise in the last four quarters was 9%. Last quarter, the company delivered a positive earnings surprise of 9.38%.
Juno Therapeutics, Inc. Price and EPS Surprise
Juno Therapeutics, Inc. Price and EPS Surprise | Juno Therapeutics, Inc. Quote
Factors at Play
With no approved products in its portfolio, Juno does not generate any product revenues yet. Hence, investor focus will primarily be on the company’s cash burn and pipeline updates.
Juno is developing cell-based cancer immunotherapies based on CAR and high-affinity TCR technologies. This therapeutic area is rapidly gaining popularity and has huge commercial potential.
In Jul 2016, the FDA placed a clinical hold on the company’s phase II study (ROCKET) evaluating its lead pipeline candidate, JCAR015, in adult patients with relapsed or refractory B cell acute lymphoblastic leukemia (r/r ALL). The hold was placed after two patients died within a week due to severe neurotoxicity following the addition of fludarabine to the pre-conditioning regimen. Though the hold was lifted a week later and the study resumed under a revised protocol, the company voluntarily placed the study on hold in Nov 2016, and is presently working with the FDA and a Safety Monitoring Board to determine future steps.
In Dec 2016, Juno Therapeutics and its partner Celgene Corporation announced that the FDA has granted Breakthrough Therapy designation to their investigational candidate, JCAR017, for the treatment of relapsed/refractory (r/r) aggressive large B-cell non-Hodgkin lymphoma (NHL), including diffuse large B-cell lymphoma (DLBCL) and Primary Mediastinal B-cell Lymphoma (PMBCL).
Further, the candidate was granted Priority Medicines (PRIME) eligibility for r/r DLBCL by the European Medicines Agency (EMA).
In Dec 2016, Juno Therapeutics announced encouraging preliminary clinical data from a phase I study (TRANSCEND) on JCAR017 for the treatment of patients with r/r aggressive NHL at ASH meeting.
We note that at the time of releasing its third-quarter results, Juno had revealed its expectatiton of cash burn of $220–$250 million in 2016.
Earnings Whispers
Our proven model does not conclusively show that Juno is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +20.64%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Juno Therapeutics currently carries a Zacks Rank #4. As it is, we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement.
Stocks That Warrant a Look
Here are a couple of health care stocks that you may want to consider, as our model shows that this have the right combination of elements to post an earnings beat this quarter.
Pacira Pharmaceuticals, Inc. (PCRX - Free Report) is scheduled to release fourth quarter results on Mar 1. The company has an Earnings ESP of +20% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Exelixis, Inc. (EXEL - Free Report) has an Earnings ESP of +200% and a Zacks Rank #2. The company is expected to release fourth quarter results on Feb 27.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>