Arcus (RCUS) To Report Q1 Earnings: What's In The Cards?
Zacks Investment Research | Apr 29, 2019 04:41AM ET
Arcus Biosciences Inc. (NYSE:RCUS) is expected to provide an update on its pipeline, when it releases first-quarter 2019 results.
The company has surpassed expectations in two of the previous four quarters and missed in one, the average negative earnings surprise being 49.66%.
Arcus’ share price has increased 1% compared with the industry ’s growth of 5%.year to date.
Let's see how things are shaping up for this announcement.
Factors to Consider
We expect the company to throw more light on pipeline updates.
Arcus, a clinical-stage biopharmaceutical company focused on creating innovative cancer immunotherapies, is developing four pipeline candidates. The company gets collaboration revenues from the Japanese company, Taiho Pharmaceutical Co.,Ltd.
The company’s most advanced small molecule pipeline candidate, AB928, is in a phase I/Ib program, being evaluated in combination with chemotherapy. AB928 is being evaluated in three combination studies with Doxil in triple negative breast cancer (TNBC) and ovarian cancer. The drug is in combination with mFolfox in colorectal cancer and gastroesophageal cancer. It is also being studied in combination with Arcus’s own AB122 in advanced solid tumors. The company expects to report initial data from the dose-escalation portion of the AB928 combination studiesand initiate dose-expansion cohorts in the studies in 2019.
The company’s CD73 inhibitor, AB680, is a highly potent, reversible and selective inhibitor of the CD73 enzyme. The company initiated its first study on AB680 (intravenous infusion) in healthy volunteers in the second half of 2018. As CD73 plays a critical role in the extracellular generation of adenosine, AB680 may provide a highly effective approach to prevent adenosine-mediated immune suppression. The company expects to report safety, tolerability, pharmacokinetic and pharmacodynamic data from the phase I study of AB680 in mid-2019.
Arcus has also initiated phase I studies for its two antibody product candidates — AB122 and AB154 (anti-IGIT antibody).
What Our Model Indicates
Our proven model does not conclusively show that Arcus is likely to beat on earnings in the to-be-reported quarter. This is because the stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates. But that is not the case here, as you will see below.
Get The News You Want
Earnings ESP: Arcus has an Earnings ESP of 0.00%. 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, which increases the predictive power of ESP. However, we need to have a positive Earnings ESP to be confident of an earnings beat.
Note that Sell-rated stocks (Zacks Rank #4 or 5) going into an earnings announcement are best avoided.
Stocks That Warrant a Look
Here are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
Ultragenyx Pharmaceuticals Inc. (NASDAQ:RARE) has an Earnings ESP of +6.36% and a Zacks Rank #2. You can see .
Glaxo SmithKline plc. (NYSE:GSK) has an Earnings ESP of +3.55% and a Zacks Rank #3. The company is scheduled to release first-quarter 2019 results on May 1.
Novo Nordisk (CO:NOVOb) A/S (NYSE:NVO) has an Earnings ESP of +0.80% and a Zacks Rank #3. The company is scheduled to release its first-quarter 2019 results on May 3.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1% and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.