We expect investors to focus on Compugen Ltd.’s CGEN progress with the development of its portfolio of pipeline candidates for various oncology indications, when it reports third-quarter 2024 earnings.
Let’s see how things have shaped up for the quarter to be reported.
Factors to Note
Compugen’s top line currently comprises revenues recognized from its license agreement with Gilead Sciences GILD and AstraZeneca. The company reported $6.7 million in revenues in the last reported quarter, comprising an upfront payment from GILD and a milestone payment from AstraZeneca.
In July, the FDA cleared CGEN’s investigational new drug (IND) application seeking to initiate a phase I study on its high affinity anti-IL-18 binding protein antibody, COM503, for the treatment of solid tumors. COM503 has been licensed to GILD.
The IND clearance triggered a $30 million milestone payment for Compugen from Gilead, which is expected to be recorded as revenues in the third quarter. The company plans to begin the phase I study on COM503 in solid tumors later in the fourth quarter of 2024. We expect management to provide more updates on the same during the third-quarter earnings call.
Compugen’s two proprietary product candidates, COM701 and COM902, are currently in phase I development for the treatment of solid tumors. The company is currently evaluating the triple combination of COM701 plus COM902 plus Merck’s blockbuster PD-1 inhibitor, Keytruda (pembrolizumab), in a proof-of-concept study for treating patients with platinum-resistant ovarian cancer. Data from the same is expected to be presented later in the fourth quarter of 2024.
Compugen’s partner AstraZeneca is developing rilvegostomig, a PD-1/TIGIT bi-specific derived from COM902, which is currently in phase III development for various cancer indications. Its successful development and a potential approval for rilvegostomig will make Compugen eligible for future milestones and mid-single-digit tiered royalty payments from AstraZeneca.
Operating expenses declined in the last reported quarter. It remains to be seen whether the same trend continued in the third quarter or not.
Shares of Compugen have plunged 14.6% so far this year compared with the industry’s decrease of 2.5%.
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CGEN's Earnings Surprise History
Compugen has a mixed earnings surprise history. The company’s earnings beat estimates in three of the trailing four quarters and missed the same on the remaining occasion. CGEN delivered an average surprise of 20.70%. In the last reported quarter, Compugen’s earnings beat estimates by 75.00%.
Compugen Ltd. Price and EPS Surprise
Compugen Ltd. price-eps-surprise | Compugen Ltd. Quote
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Earnings Whispers for CGEN Stock
Our proven model does not conclusively predict an earnings beat for Compugen this time around. 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. That is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Compugen has an Earnings ESP of 0.00% as the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at 21 cents per share.
Zacks Rank: Compugen currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Exelixis, Inc. EXEL has an Earnings ESP of +15.66% and a Zacks Rank #2 at present.
Shares of EXEL have gained 18.1% in the year-to-date period. Earnings of EXEL beat estimates in two of the trailing four quarters and missed the same twice, delivering an average surprise of 13.25%. EXEL will report third-quarter results on Oct. 31.
Biogen BIIB has an Earnings ESP of +1.97% and a Zacks Rank #3.
Biogen’s stock has lost 29.3% year to date. BIIB beat earnings estimates in three of the last four quarters while missing on the remaining occasion. On average, Biogen delivered an earnings surprise of 10.25% in the last four quarters. BIIB will report third-quarter results on Oct. 30.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Biogen Inc. (BIIB) : Free Stock Analysis Report
Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
Exelixis, Inc. (EXEL) : Free Stock Analysis Report
Compugen Ltd. (CGEN) : 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 Nasdaq, Inc.
