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Horizon (HZNP) to Report Q3 Earnings: What's in the Cards?

Horizon Therapeutics Public Limited Company HZNP is scheduled to release third-quarter 2020 results on Nov 2.

The company has an excellent track record, delivering earnings beat in the trailing four quarters by 38.63%, on average. In the last reported quarter, Horizon Therapeutics came up with an earnings surprise of 7.50%.

Shares of the company have gained 113.5% in the year so far against the industry’s decline of 4.1%.

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

Factors at Play

Horizon’s eye drug Tepezza’s commercial launch drove sales in the second quarter of 2020.  The trend of higher sales is likely to have continued in the third quarter.

Per the company, owing to the strong uptake of Tepezza and its substantially higher revenues that more than offset the expected adversity from the COVID-19 pandemic, Horizon Therapeutics significantly raised its full-year sales expectations from Tepezza and correspondingly the net sales guidance when it released its  second quarter results.

The company now expects 2020 net sales of $1.85-$1.90 billion, an increase from the previous guidance range of $1.40-$1.45 billion. The company now expects Tepezza’s 2020 net sales to be more than $650 million compared with the previous guidance of greater than $200 million. 

The company will also provide updates on its pipeline products.

Horizon is currently evaluating the efficacy and safety of the concomitant use of Krystexxa with methotrexate to increase the complete response rate of the drugin the MIRROR placebo-controlled RCT. We expect the company to provide updates on this in the third quarter.

The company expects to initiate an open-label trial by the end of 2020 to evaluate the impact of administering Krystexxa over a significantly shorter infusion duration. The company is expected to provide an update on the same during the third-quarter earnings call.

Moreover, investors will be keen to know if the coronavirus pandemic has affected the demand for other marketed drugs and those in clinical studies.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Horizon 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. But that is not the case here as you will see below.

Earnings ESP: Horizon has an Earnings ESP of -2.07%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

 

Horizon Therapeutics Public Limited Company Price and EPS Surprise

Horizon Therapeutics Public Limited Company Price and EPS Surprise

Horizon Therapeutics Public Limited Company price-eps-surprise | Horizon Therapeutics Public Limited Company Quote

Stocks That Warrant a Look

Here are some biotech stocks with the right mix of elements to beat on earnings this time around:

Alkermes Plc. (ALKS) has an Earnings ESP of +142.86% and a Zacks Rank #3.

Alnylam (ALNY) has an Earnings ESP of +4.23% and a Zacks Rank #3.  

Alexion Pharmaceutticals Inc. (ALXN) has an Earnings ESP of +0.84% and a Zacks Rank of 3.

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Alkermes plc (ALKS): Free Stock Analysis Report
 
Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report
 
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Horizon Therapeutics Public Limited Company (HZNP): 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.

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