Will GW Pharmaceuticals (GWPH) Miss this Earnings Season? - Analyst Blog


GW Pharmaceuticals ( GWPH ) is scheduled to report third-quarter fiscal 2014 results on Aug 6. Last quarter, the company posted a positive surprise of 263.33%. Let's see how things are shaping up for this announcement.

Factors at Play

GW Pharma's key growth driver, Sativex, is expected to continue to perform well. In the fiscal second quarter, the company had announced that for the six months ended Mar 31, 2014, in-market Sativex sales volumes sold by GW Pharma's commercial partners increased by 40% over the prior-year period. However, the company's operating expenses are expected to remain under pressure as it continues to invest in pipeline.

Earnings Whispers?

Our proven model does not conclusively show that GW Pharma is likely to report a narrower-than-expected loss this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below.

Zacks ESP: Earnings ESP for GW Pharma is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 62 cents per share.

Zacks Rank: GW Pharma carries a Zacks Rank #4 (Sell).

We caution against stocks with Zacks Ranks #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

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.

ARIAD Pharmaceuticals, Inc. ( ARIA ) has an earnings ESP of +3.70% and carries a Zacks Rank #3. It is scheduled to announce its second quarter 2014 financial results before the opening bell on Aug 6.

Impax Laboratories Inc. ( IPXL ) has an earnings ESP of +5.13% and carries a Zacks Rank #3. It will announce its second quarter 2014 financial results before markets open on Aug 6.

The earnings ESP for InterMune, Inc. ( ITMN ) is +1.79% and it carries a Zacks Rank #3. The company is scheduled to release its second-quarter results before the opening bell on Aug 6.

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IMPAX LABORATRS (IPXL): Free Stock Analysis Report

ARIAD PHARMA (ARIA): Free Stock Analysis Report

GW PHARMA-ADR (GWPH): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: ITMN , IPXL , ARIA , GWPH



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