TrovaGene Inc. TROV is scheduled to report second-quarter 2015 earnings results on Aug 10. Last quarter, the company reported a loss of 24 cents per share which was wider than the Zacks Consensus Estimate by a penny (4.4%).
Notably, the company missed the Zacks Consensus Estimate in the last three consecutive quarters. The average earnings surprise over the last four quarters is pegged at -3.1%.
Let us see how things are shaping up for this announcement.
Factors Influencing This Quarter
We believe that wider adoption of TrovaGene's Precision Cancer Monitoring (PCM) technology is a key growth catalyst. PCM's superiority in detecting ctDNA in urine samples as compared to traditional procedures is a major positive.
TrovaGene is currently part of more than 15 clinical collaborations, which aim at evaluating the efficiency of the PCM system in detecting and monitoring different mutations related to pancreatic, melanoma (advanced skin cancer), colorectal and lung cancer. We also note that TrovaGene's growing relationship with leading cancer centers (top 20) is significantly encouraging.
Meanwhile, the company is expanding its sales and marketing team. The appointment of an experienced marketing professional like Matt Posard as Chief Commercial Officer is a major positive in our view. Prior to joining TrovaGene, Posard served as Senior Vice President and General Manager of Translational & Consumer Genomics at Illumina Inc ILMN .
Our proven model does not conclusively show that TrovaGene is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP : TrovaGene has a 0.00% ESP. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 24 cents.
Zacks Rank : TrovaGene carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are some health care stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
Ardelyx ARDX has an Earnings ESP of +366.67% and a Zacks Rank #2 (Buy).
Trevena TRVN has an Earnings ESP of +8.11% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report