) is set to report second quarter 2014 results on Aug 7 after the
market closes. Last quarter, the company delivered a negative
earnings surprise of 17.65%. Let's see how things are shaping up
for this announcement.
Factors Influencing This Quarter
Emergent has delivered positive earnings surprises in three of the
last four quarters with an average beat of 27.83%. The company
operates through two segments - Biodefense and Biosciences. The
Biodefense segment focuses on government-sponsored development and
supply of measures to counter bioterrorism threats. The unit
includes both the marketed products at Emergent BioSolutions -
BioThrax and Reactive Skin Decontamination Lotion (RSDL).
Emergent's product sales increased 18% to $35.8 million in the
first quarter of 2014 on the back of strong RSDL sales. The
company's product sales are expected to keep driving its topline in
the second quarter as well. Emergent's contracts and grants revenue
in the quarter is also expected to increase.
Last quarter, BioThrax sales decreased 20% to $24.5 million due to
the timing of deliveries to the Strategic National Stockpile. This
may be matter of concern in the second quarter as well. The
company's increasing operating expenses will also affect
Our proven model however does not conclusively show that Emergent
is likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
The Earnings ESP for Emergent is 0.00% since both the Most Accurate
Estimate and the Zacks Consensus Estimate stand at 26 cents.
Zacks Rank #3 (Hold):
Emergent's Zacks Rank #3 when combined with a 0.00% ESP makes
surprise prediction difficult.
Other Stocks to Consider
Here are some companies you may want to consider as our model shows
that they have the right combination of elements - a positive Zacks
Earnings ESP and a Zacks Rank #1, #2 or #3.
VIVUS Inc. (
) has an Earnings ESP of +6.45% and holds a Zacks Rank #3. VIVUS
will be reporting second quarter earnings on Aug 7, after market
Anacor Pharmaceuticals, Inc. (
) has an Earnings ESP of +3.18% and holds a Zacks Rank #2 (Buy).
Anacor will be reporting second quarter earnings on Aug 7 after
Myriad Genetics Inc. (
) has an earnings ESP of +4.35% and holds a Zacks Rank #1(Strong
Buy). Myriad will report fiscal fourth quarter 2014 earnings on Aug
12, after market closes.
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ANACOR PHARMACT (ANAC): Free Stock Analysis
EMERGENT BIOSOL (EBS): Free Stock Analysis
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MYRIAD GENETICS (MYGN): Free Stock Analysis
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