5 Biotech Stocks Set to Outpace Q1 Earnings Estimates

It has been a mixed earnings season for the drug and biotech sector so far. While several large drug/biotech companies beat estimates for both earnings and revenues, others like Pfizer missed on both counts. Many companies beat estimates for earnings while missing the same for sales or vice versa. Most companies maintained their previously issued financial outlook for 2022. There are some smaller biotechs, which are yet to report.

Per the Zacks classification, the pharma/biotech industry comes under the broader Medical sector, which comprises pharma/biotech as well as medical device companies.

Per the Earnings Trends report, as of May 4, 77.2% of the companies in the Medical sector, constituting nearly 87.8% of the sector’s market capitalization, reported earnings. While 84.1% of the companies beat earnings estimates, 75% beat the same for revenues. Earnings increased 18.9% year over year on 17.3% higher revenues.

Overall, first-quarter earnings of the Medical sector are expected to rise 16.3% on a 14.8% sales increase.

Zeroing in on Winners

Here we have highlighted five biotech companies — Angion Biomedica ANGN, Applied Therapeutics APLT, Bolt Biotherapeutics BOLT, Ikena Oncology IKNA and Landos Biopharma LABP — that are expected to deliver a beat in their upcoming quarterly results.

Earnings ESP is our proprietary methodology for determining the stocks that have the best chance to deliver an earnings surprise. Earnings ESP shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.

According to the Zacks model, 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. The selection can be done with the help of the Zacks Stock Screener.

Our research shows that for stocks with this combination, the chance of an earnings surprise is as high as 70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

5 Drug/Biotech Stocks That Match the Criteria

Angion Biomedica

This clinical-stage biotech has an Earnings ESP of +26.44% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here

The Zacks Consensus Estimate for the first quarter is pegged at a loss of 44 cents per share. Angion Biomedica is expected to release results next week.

Angion Biomedica beat estimates in three of the last four quarters while missing in one, with the average surprise being 47.51%

Angion Biomedica Corp. Price and EPS Surprise

Angion Biomedica Corp. price-eps-surprise | Angion Biomedica Corp. Quote

Applied Therapeutics

Also a clinical-stage biotech, Applied Therapeutics makes novel drug candidates against validated molecular targets in indications of high unmet medical needs. APLT has an Earnings ESP of +21.95% and a Zacks Rank of 2. The Zacks Consensus for the first quarter is pegged at a loss of 82 cents per share.

Applied Therapeutics beat estimates in two of the last four quarters while missing in one and delivering in-line results in one. The company’s average earnings surprise is 2.58%. The company should release results this month.

Applied Therapeutics Inc. Price and EPS Surprise

Applied Therapeutics Inc. price-eps-surprise | Applied Therapeutics Inc. Quote

Bolt Biotherapeutics

This Redwood City, CA-based immuno-oncology biotech, Bolt Biotherapeutics has an Earnings ESP of +2.13% and a Zacks Rank of #3. The Zacks Consensus Estimate for the first quarter is pegged at a loss of 71 cents per share.

Bolt Biotherapeutics missed estimates in three of the last four quarters while delivering in-line results in one with the average negative earnings surprise being 28.35%.

Bolt Biotherapeutics, Inc. Price and EPS Surprise

Bolt Biotherapeutics, Inc. price-eps-surprise | Bolt Biotherapeutics, Inc. Quote

Ikena Oncology

Boston-based cancer biotech, Ikena Oncology has an Earnings ESP of +4.14% and a Zacks Rank of 2. The Zacks Consensus Estimate for the first quarter is pegged at a loss of 42 cents per share.

Ikena Oncology beat earnings estimates in two of the last four quarters while missing in the other two with the average negative surprise being 33.37%.

Ikena Oncology, Inc. Price and EPS Surprise

Ikena Oncology, Inc. price-eps-surprise | Ikena Oncology, Inc. Quote

Landos Biopharma

Landos Biopharma is a clinical biotech focused on developing novel oral therapeutics for autoimmune diseases. The company has an Earnings ESP of +4.70% and a Zacks Rank #2. The Zacks Consensus Estimate for the first quarter is pegged at a loss of 37 cents per share.

Landos Biopharma beat estimates in two of the last four quarters while missing in one and delivering in-line results in one. The company’s average earnings surprise is 34.91%.

Landos Biopharma, Inc. Price and EPS Surprise

Landos Biopharma, Inc. price-eps-surprise | Landos Biopharma, Inc. Quote

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Special Report: The Top 5 IPOs for Your Portfolio

Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards - and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.