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Lannett (LCI) to Report Q3 Earnings: What's in the Cards?

Zacks Equity Research

During Lannett Company, Inc.’s LCI fiscal first-quarter 2019 call, the focus is expected to be on product launches.

Lannett’s shares have slumped 54.4% in the past year compared with the industry’s decline of 13%.

 

Let’s see how things are shaping up for this announcement.

Factors in Play

Lannett the generic pharmaceutical company launched 17 products in calendar year 2018, which are expected to contribute significantly to net sales in fiscal third-quarter 2019. The company's product launches during the quarter are expected to contribute significantly to sales. Investors’ focus will be on the launch of these products, as stated by the management earlier.

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The company intends to realize $66 million in total savings with $33 million of reinvestment. In fact, a portion of these savings is expected to be realized in fiscal third-quarter 2019.

In March 2019, Lannett received approval from the FDA for its abbreviated new drug application (ANDA) for Aspirin and Extended-Release Dipyridamole Capsules, 25 mg/200 mg, the therapeutic equivalent to the reference listed drug, Aggrenox Capsules, 25 mg/200 mg, of Boehringer Ingelheim Pharmaceuticals, Inc. The drug should boost sales for the company in fiscal third quarter 2019.

What Our Model Indicates

Our proven model does not conclusively show that Lannett is likely to beat on earnings in the to-be-reported 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.

Earnings ESP: Lannett has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at a profit of 62 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Lannett Co Inc Price and EPS Surprise

Lannett Co Inc Price and EPS Surprise | Lannett Co Inc Quote

 

Zacks Rank: The company carries a Zacks Rank #2, 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 health-care 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.

Pfizer Inc. PFE has an Earnings ESP of +0.65% and a Zacks Rank #3. The company is scheduled to release first-quarter 2019 results on Apr 30. You can see the complete list of today’s Zacks #1 Rank stocks here.

Glaxo SmithKline plc. GSK has an Earnings ESP of +1.27% and a Zacks Rank #2. The company is scheduled to release first-quarter 2019 results on May 1.

Novo Nordisk A/S NVO has an Earnings ESP of +0.8% and a Zacks Rank #3. The company is scheduled to release its first quarter 2019 results on May 3.

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Pfizer Inc. (PFE) : Free Stock Analysis Report
 
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Lannett Co Inc (LCI) : Free Stock Analysis Report
 
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Zacks Investment Research