Watch These 5 Biotech Stocks for Q2 Earnings: Beat or Miss?

The Earnings Trends report indicates that, as of July 22, 10.2% of the companies in the Medical sector, representing about 25% of the sector’s market capitalization, have reported quarterly earnings. So far, all participants have outperformed both earnings and revenues. While earnings rose 14.6% year over year, sales increased 2.3%. Overall, second-quarter earnings are expected to fall 17.4% year over year, while revenues are expected to rise 5.2%.

Zeroing in on Winners

We have highlighted five biotech companies — Harmony Biosciences HRMY, Acadia Pharmaceuticals ACAD, Biogen BIIB, Insmed INSM and Agios Pharmaceuticals AGIO — that are expected to deliver a beat in their upcoming quarterly results.

Earnings ESP is our proprietary methodology for determining the stocks with the best chance of delivering an earnings surprise. It 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 made with the help of the Zacks Stock Screener.

Our research shows that the chance of an earnings surprise for stocks with this combination 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 Biotech Stocks That Match the Criteria

Harmony Biosciences

HRMY is a commercial-stage company that develops and commercializes therapies for sleep/wake disorders and rare neurological diseases. The company has an Earnings ESP of +14.14% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for second-quarter earnings is pegged at 97 cents per share.

Harmony Biosciences missed on earnings in each of the trailing four quarters, delivering an average negative surprise of 25.16%. It is scheduled to report earnings on Aug. 4, before the opening bell.

Acadia Pharmaceuticals

A commercial-stage company, ACAD, is focused on developing and marketing therapies for central nervous system disorders and rare diseases. The company has an Earnings ESP of +25.00% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter earnings is pegged at 6 cents per share.

Acadia Pharmaceuticals beat on earnings in three of the trailing four quarters and missed the mark on one occasion, delivering an average surprise of 20.83%. The company is scheduled to release results on Aug. 4, after the market closes.

Biogen

BIIB is one of the world’s leading biotechs, focusing on developing innovative therapies for treating serious neurological and neurodegenerative diseases. The company has an Earnings ESP of +220.79% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter earnings is pegged at 94 cents per share.

Biogen beat on earnings in each of the trailing four quarters, delivering an average surprise of 26.87%. It is scheduled to report earnings on July 29, before the opening bell.

Insmed

INSM is a commercial-stage biopharmaceutical company focused on the development of therapies targeting serious and rare indications. The company has an Earnings ESP of +22.32% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter earnings is pegged at a loss of 69 cents per share.

Insmed missed on earnings in three of the trailing four quarters and beat the mark on one occasion, delivering an average negative surprise of 22.93%. The company is scheduled to release results on Aug. 6, before the opening bell.

Agios Pharmaceuticals

AGIO is a biopharmaceutical company focused on the development of treatments for rare genetic metabolic disorders, a subset of orphan genetic metabolic diseases. The company has an Earnings ESP of +12.67% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter earnings is pegged at a loss of $1.86 per share.

Agios beat on earnings in three of the trailing four quarters and missed the mark on one occasion, delivering an average surprise of 2.39%. It is scheduled to report earnings on July 30, before the opening bell.

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This article originally published on Zacks Investment Research (zacks.com).

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