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Cassava Sciences (SAVA) to Report Q3 Earnings: What's in Store?

Zacks Equity Research
·4-min read

We expect investors to focus on pipeline development updates when Cassava Sciences’ SAVA reports third-quarter results.

Cassava earnings have beat estimates in one of the trailing four quarters while missing the same in the remaining three quarters, with a negative earnings surprise of 10.79%, on average. In the last reported quarter, Cassava delivered a negative earnings surprise of 14.29%.

Cassava Sciences, Inc. Price, Consensus and EPS Surprise

 

Cassava Sciences, Inc. Price, Consensus and EPS Surprise
Cassava Sciences, Inc. Price, Consensus and EPS Surprise

Cassava Sciences, Inc. price-consensus-eps-surprise-chart | Cassava Sciences, Inc. Quote

 

Shares of Zoetis have fallen 16.6% in the year-to-date period, compared to the industry’s 27.9% decline.

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Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Let's see how things have shaped up for this announcement.

Factors to Consider

Cassava Sciences is a clinical-stage biopharma company with two biopharmaceutical assets under development — its lead product candidate, simufilam, for treating Alzheimer’s disease (AD) and SavaDx, a diagnostic product candidate to detect the presence of AD from a blood sample.

The company is currently developing its lead therapeutic product candidate, simufilam, in two separate phase III studies — RETHINK-ALZ and REFOCUS-ALZ — in patients with mild-to-moderate Alzheimer’s disease dementia.

Both simufilam and SavaDx are in-house candidates and Cassava owns exclusive worldwide rights to these drug assets without any royalty obligations to third parties.

Being a clinical-stage company, Cassava does not earn any revenues as of yet and has been operating on losses.

Earlier last month, Cassava initiated an open-label extension study designed to generate long-term safety and tolerability data for its investigational Alzheimer’s drug, simufilam (oral, 100 mg dosage). The study will enroll Alzheimer’s patients who complete either one of Cassava’s ongoing phase III study, evaluating simufilam.

Given the recent initiation of an open-label extension study of its product candidate simufilam, the research and development expenses of the company are expected to increase in the to-be-reported quarter.

Further updates on the product candidates and development initiatives are expected during the upcoming earnings call.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Cassava Sciences this time around. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here, as you will see below.

Earnings ESP:Cassava has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at a loss of 47 cents per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: Cassava currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some stocks in the same sector worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Jazz Pharmaceuticals JAZZ has an Earnings ESP of +2.12% and a Zacks Rank of 2.

Shares of Jazz have returned 12.9% in the year-to-date period. Earnings of JAZZ beat earnings estimate in three of the last four quarters, missing the same in one by 2 cents. The company has an average earnings surprise of 10.94%

Immunogen IMGN has an Earnings ESP of +4.39% and a Zacks Rank of 3.

Shares of Immunogen have declined 19.9% in the year-to-date period. Earnings of IMGN beat earnings estimates in three of the last four quarters, missing the same in one. The company has an average earnings surprise of 13.53%.

Ionis Pharmaceuticals IONS has an Earnings ESP of +7.03% and a Zacks Rank of 3.

Shares of Ionis Pharmaceuticals have returned 45.2% year to date. Earnings of IONS beat estimates in two of the last four quarters and missed the mark on the other two occasions, witnessing a surprise of 19.47%, on average.

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


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Jazz Pharmaceuticals PLC (JAZZ) : Free Stock Analysis Report
 
ImmunoGen, Inc. (IMGN) : Free Stock Analysis Report
 
Ionis Pharmaceuticals, Inc. (IONS) : Free Stock Analysis Report
 
Cassava Sciences, Inc. (SAVA) : Free Stock Analysis Report
 
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