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Lannett (LCI) to Report Q1 Earnings: What's in the Cards?

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Investors focus is likely to be on the performance of Lannett Company, Inc.’s anti-psychosis and cardiovascular drugs when it reports fiscal first-quarter 2020 results.

Lannett’s shares have rallied 147.2% so far this year compared with the industry’s increase of 0.5%.

Factors at Play

Lannett’s generic product launches since 2018 have driven net sales and the trend most likely continued in the soon-to-be reported quarter. In fact, anti-psychosis and cardiovascular drugs in the company’s generic portfolio witnessed strong sales growth in the fiscal fourth quarter of 2019. We expect this trend to have continued in the fiscal first quarter of 2020.

The Zacks Consensus Estimates for sales of anti-psychosis and cardiovascular drugs stands at $18 million and $25 million, respectively.

In May and June, the company launched generic versions of two major attention deficit hyperactivity disorder drugs namely J&J’s (JNJ - Free Report) Concerta and Teva Pharmaceutical’s (TEVA - Free Report) Adderall. Launch of these two generic drugs along with a generic version of Aspirin are likely to have resulted in significant sales for Lannett.

Restructuring initiatives and reduction in outstanding loans is likely to have benefited Lannett’s bottom line in the first quarter of 2020. However, continued launches and research activities might have driven operating expenses higher.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Lannett in 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: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate is -1.64%.  You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Lannett sports a Zacks Rank #1.

Lannett Co Inc Price and Consensus

 

Lannett Co Inc Price and Consensus

Lannett Co Inc price-consensus-chart | Lannett Co Inc Quote

A Stock That Warrants a Look

Here is a biotech stock that you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat in its upcoming release.

Incyte Corporation (INCY - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank #1. The company is scheduled to release third-quarter results on Oct 29. You can see the complete list of today’s Zacks #1 Rank stocks here.

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Johnson & Johnson (JNJ) - free report >>

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Incyte Corporation (INCY) - free report >>

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