What To Expect From Endocyte (ECYT) Stock For Q1 Earnings?

Endocyte, Inc (NASDAQ:ECYT) is expected to report first-quarter 2017 results on May 3. In fact, the company has an impressive track record, having beaten estimates in three of the trailing four quarters and reporting in-line results in the remaining quarter. Overall, the company has recorded an average positive surprise of 5.52%.

In the last reported quarter, Endocyte missed expectations by 4%. Let's see how things are shaping up for this quarter.

Endocyte’s share price movement shows that the stock has underperformed the Zacks classified Medical-Drugs industry year to date. The stock was down nearly 9.8% as against the industry’s gain of approximately 4.9% during the same timeframe.

Factors at Play

Being a biotech company in development stage, Endocyte does not have any approved product in its portfolio. Investors are thus expected to keep an eye on the company’s pipeline development. Endocyte's pipeline presently comprises EC1456 and EC1169.

EC1456, second-generation folate targeted agent which is being studied as second-line treatment for non-small cell lung cancer (NSCLC) is identified by the companion imaging agent etarfolatide. The company has initiated the expansion phase of the study on EC1456 in the selected folate receptor-positive NSCLC cancer patients.

Patients included in this expansion phase of the trial will receive first-line chemotherapy and may also be treated with anti-PD-1 therapy. Initially, anti-tumor response of the single agent will be evaluated. Positive results from the study would lead to its evaluation as combination therapies in indications like triple-negative breast cancer, ovarian cancer and endometrial cancer.

EC1169 is being evaluated in a phase I study for metastatic castration-resistant prostate cancer (mCRPC). The company is currently enrolling patients in the expansion phase of the EC1169 trial in up to 50 second-line chemotherapy and up to 50 taxane-naïve metastatic castrate-resistant prostate cancer (mCRPC) patients at a maximum clinical once per week dose of 6.5 mg/m2.

Efficacy and safety data from the expansion cohorts for both EC1456 and EC1169 will be reported at medical conferences in the first half of 2017.
Endocyte’s successful development of targeted small-molecule drug conjugates (SMDCs) that are able to penetrate deep into dense solid tumors and have a shorter half-life is likely to help the company gain an edge over existing therapies. This biotech company uses its proprietary technology platform to develop various new SMDCs for a range of diseases.

In addition, the company is working on the development of companion imaging agents that help to identify patients most likely to benefit from its product, upon approval. This should help in expanding the market for SMDCs, thereby boosting growth at the company. However, with no approved product in its portfolio at the moment, Endocyte has to depend heavily on its partners for top-line growth.

Earnings Whispers

Our proven model does not conclusively show earnings beat for Endocyte this quarter. This is because a 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.

Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because the Most Accurate estimate is in line with the Zacks Consensus Estimate of a loss of 28 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

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

Endocyte, Inc. Price and EPS Surprise

Endocyte, Inc. Price and EPS Surprise | Endocyte, Inc. Quote

Stocks That Warrant a Look

Here are some health care stocks that you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter.

Gilead Sciences, Inc. (NASDAQ:GILD) has an Earnings ESP of +2.77% and a Zacks Rank #3. The company is scheduled to release results on May 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) has an Earnings ESP of +0.59% and a Zacks Rank #3. The company is expected to release results on May 8.
Fibrogen Inc. (NASDAQ:FGEN) has an Earnings ESP of +23.81% and a Zacks Rank #3. The company is expected to release results on May 8.

Sell These Stocks. Now.

Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>.