Vaxart (VXRT) to Report Q2 Earnings: What's in the Cards?

We expect investors’ focus to be on the progress of Vaxart, Inc.’s VXRT coronavirus vaccine program when the company reports second-quarter 2020 results. In the last reported quarter, the company delivered an earnings surprise of 50.00%.

The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and met the same once, with the average surprise being 20.78%.

Vaxart’s share price has surged 3066.9% so far this year against the industry’s decrease of 6.9%.

Let’s see how things have shaped up for this announcement.

Factors to Note

Vaxart has one royalty-bearing product in its portfolio — Inavir. The drug is an antiviral for the treatment of influenza that is marketed by GlaxoSmithKline GSK. Vaxart earns royalty on net sales of the drug in Japan. However, we note that sales of this antiviral varies significantly from quarter to quarter due to the seasonality and intensity of flu. The company had another royalty-bearing product, Relenza, that lost patent protection in July 2019, following which the company did not earn any royalty on its sales.

The company has been also developing vaccine candidates for norovirus, coronavirus and influenza. The monovalent influenza vaccine is the most advanced candidate in its pipeline and is currently being evaluated in a phase II study. Norovirus vaccine candidate is in phase I stage. The company has a collaboration with J&J JNJ to develop an influenza vaccine. Currently, it is in preclinical stage. Ongoing clinical studies and pre-clinical developments are likely to have driven operating expenses higher during the reporting quarter.

Vaxart has also been focusing on developing a coronavirus vaccine. The company initiated its coronavirus program in January. The company announced positive pre-clinical data in April and selected its lead candidate for a clinical study in May. The company has been developing an oral vaccine using its proprietary VAAST oral vaccines platform. In June, the vaccine became a part of the Operation Warp Speed, an initiative by the U.S. federal government to provide substantial quantities of safe, effective vaccine for Americans by January 2021. The company expects to start a phase I study to evaluate its coronavirus vaccine candidate in the second half of 2020.

We expect the company to discuss the progress of its coronavirus vaccine candidate on its second-quarter earnings call. It can also provide an update related to the timeline for initiation of a clinical study.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Vaxart 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’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (loss of 8 cents per share) and the Zacks Consensus Estimate (loss of 7 cents per share) is -20.00%.

Zacks Rank: Vaxart currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

VAXART, INC. Price and Consensus

VAXART, INC. Price and Consensus

VAXART, INC. price-consensus-chart | VAXART, INC. Quote

A Stock That Warrants a Look

Here is a biotech stock that you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat in its upcoming release.

Incyte Corporation INCY has an Earnings ESP of +4.62% and a Zacks Rank #3.

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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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