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Epizyme (EPZM) to Report Q4 Earnings: What's in the Cards?

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Epizyme Inc.  is expected to release fourth-quarter 2019 results on Feb 24.

The company’s surprise history has been impressive so far. Its earnings beat estimates in the trailing four quarters by 20.94%, on average. In the third quarter, Epizyme reported a positive earnings surprise of 25.93%.

Shares of Epizyme have surged 106.1% in the past year against the industry’s decline of 1.9%.

Let’s see how things are shaping up for the quarter to be reported.

Key Developments in Q4

In January 2020, the FDA granted accelerated approval to lead drug, tazemetostat, for the treatment of adults and pediatric patients aged 16 years or above with metastatic or locally advanced epithelioid sarcoma (ES) not eligible for complete resection. The drug will be marketed under the brand name, Tazverik. We expect the company to provide commercialization updates on the drug during the fourth-quarter earnings call.

The company is also working on expanding the label of Tazverik and submitted another new drug application to the FDA for the treatment of patients with relapsed or refractory follicular lymphoma (FL) who have received at least two prior lines of systemic therapy. The same was accepted by the FDA in February 2020 with an action date of Jun 18, 2020.

In January 2020, Epizyme announced that it exercised its option to sell $50 million of its common stock to Royalty Pharma. Epizyme expects that this additional capital combined with the existing cash, cash equivalents and marketable securities will further support its current operating runway into 2022, which includes the planned launch of tazemetostat for ES and FL indications. We expect the company to provide an update on the same along with fourth-quarter results.

The company is likely to have incurred higher operating expenses related to commercialization activities and other clinical developments for Tazverik during the to-be-reported quarter.

Why a Likely Earnings Beat

Our proven model predicts an earnings beat for Epizyme 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Epizyme has an Earnings ESP of +3.92%, as the Zacks Consensus Estimate stands at a loss of 51 cents and the Most Accurate Estimate is pegged at a loss of 49 cents.

Zacks Rank: The company carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

 

Epizyme, Inc. Price and EPS Surprise

 

Epizyme, Inc. Price and EPS Surprise

Epizyme, Inc. price-eps-surprise | Epizyme, Inc. Quote

Other Stocks That Warrant a Look

Here are a few other healthcare stocks worth considering, as our model shows that these too have the right mix of elements to beat estimates this time around.

Vericel Corporation (VCEL - Free Report) has an Earnings ESP of +11.29% and a Zacks Rank #1. The company is scheduled to release fourth-quarter results on Feb 25.

AMAG Pharmaceuticals, Inc. has an Earnings ESP of +31.03% and a Zacks Rank #3.

Sage Therapeutics Inc. (SAGE - Free Report) has an Earnings ESP of +2.74% and a Zacks Rank #3. The company is scheduled to release fourth-quarter results on Feb 27.

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