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Will TrovaGene (TROV) Pull an Earnings Surprise in Q2?

TrovaGene Inc.TROV is expected to release second-quarter 2016 results on Aug 4. Last quarter, the company reported a loss of 38 cents per share, which was wider than the Zacks Consensus Estimate by 6 cents.

Notably, the company's results compared unfavorably with the Zacks Consensus Estimate in the last four quarters, with an average miss of 15.17%.

Let's see how things are shaping up for this quarter.

Factors at Play

We believe that rising adoption of Trovera is the key growth catalyst for TovaGene. Built upon the company's Precision Cancer Monitoring (PCM) platform, Trovera urine and blood-based EGFR, KRAS and BRAF CLIA tests are available to oncologists for the detection and monitoring of cancerous tumors.

TROVAGENE INC Price and EPS Surprise

TROVAGENE INC Price and EPS Surprise | TROVAGENE INC Quote

TrovaGene continues to present and publish clinical data along with study results, which confirms the effectiveness of Trovera in detecting cancerous mutations. Growing clinical evidence suggests that urine-based biopsy is an effective alternative to plasma or tissue-based tests when it comes to the detection of EGFR T790M mutations for targeted therapies.

Additionally, recent research collaborations with the likes of USC Norris Comprehensive Cancer Center and the University of Michigan Comprehensive Cancer Center is expanding the research horizon for Trovagene. These partnerships will enhance the popularity of the Trovera device among research oncologists, which will further drive its adoption.

Moreover, agreements with Stratose, Fortified Provider Network, Multiplan, FedMed and America's Choice Provider Network will help TrovaGene achieve better market traction and drive top-line growth.

However, inconsistent results remain a headwind in the near term.

Earnings Whispers

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 39 cents.

Zacks Rank : TrovaGene carries a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.

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

Stocks to Consider

Here are a few stocks worth considering that, per our model, have the right combination of elements to post an earnings beat this quarter:

GlycoMimetics Inc. GLYC with an Earnings ESP of +13.64% and Zacks Rank #1.

Zoetis Inc. ZTS with an Earnings ESP of +2.27% and Zacks Rank #1.

ANI Pharmaceuticals Inc. ANIP with an Earnings ESP of +2.63% and a Zacks Rank #1.

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TROVAGENE INC (TROV): Free Stock Analysis Report

GLYCOMIMETICS (GLYC): Free Stock Analysis Report

ZOETIS INC (ZTS): Free Stock Analysis Report

ANI PHARMACEUT (ANIP): 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.


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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