Lexicon Prescribed drugs (LXRX) got here out with quarterly earnings of $0.71 per share, beating th
Lexicon Prescribed drugs (LXRX) got here out with quarterly earnings of $0.71 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $1.95 per share a 12 months in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of 57.78%. 1 / 4 in the past, it was anticipated that this drugmaker would put up a lack of $0.57 per share when it truly produced a lack of $0.64, delivering a shock of -12.28%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates 3 times.
Lexicon, which belongs to the Zacks Medical – Biomedical and Genetics trade, posted revenues of $6.63 million for the quarter ended September 2020, lacking the Zacks Consensus Estimate by 94.43%. This compares to year-ago revenues of $294.45 million. The corporate has topped consensus income estimates two instances over the past 4 quarters.
The sustainability of the inventory’s rapid worth motion based mostly on the recently-released numbers and future earnings expectations will largely depend upon administration’s commentary on the earnings name.
Lexicon shares have misplaced about 70.6% for the reason that starting of the 12 months versus the S&P 500’s achieve of 1.3%.
What’s Subsequent for Lexicon?
Whereas Lexicon has underperformed the market to date this 12 months, the query that involves buyers’ minds is: what’s subsequent for the inventory?
There aren’t any simple solutions to this key query, however one dependable measure that may assist buyers deal with that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified currently.
Empirical analysis reveals a robust correlation between near-term inventory actions and developments in earnings estimate revisions. Buyers can observe such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a powerful observe report of harnessing the ability of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for Lexicon was blended. Whereas the magnitude and route of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out in step with the market within the close to future. You may see the entire record of at the moment’s Zacks #1 Rank (Sturdy Purchase) shares right here.
Will probably be attention-grabbing to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is -$0.39 on $0.18 million in revenues for the approaching quarter and -$0.99 on $147.82 million in revenues for the present fiscal 12 months.
Buyers must be aware of the truth that the outlook for the trade can have a cloth impression on the efficiency of the inventory as nicely. By way of the Zacks Trade Rank, Medical – Biomedical and Genetics is presently within the backside 27% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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Lexicon Prescribed drugs, Inc. (LXRX): Free Inventory Evaluation Report
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