Investors will likely focus on the progress of

Arcturus Therapeutics Holdings Inc.

’s

ARCT

COVID-19 vaccine candidate on the fourth-quarter earnings call.

Arcturus’ earnings performance has been dismal over the trailing four quarters. The company’s earnings missed estimates in each of the last four quarters with the average negative surprise being 47.84%.

Shares of Arcturus have soared 399.1% so far this year against the

industry

‘s decrease of 14.9%.

In the last reported quarter, Arcturus delivered a negative earnings surprise of 95.74%.

Factors to Note

Arcturus has two clinical-stage candidates in its pipeline — a single dose, mRNA-based COVID-19 vaccine and a therapeutic candidate for ornithine transcarbamylase (OTC) deficiency.

The company’s COVID-19 vaccine candidate, ARCT-021, has shown favorable immunogenicity and safety profile when the company announced interim data from a phase I/II study in November last year. Based on this study data, the FDA and Singapore Health Sciences Authority granted permission to initiate a phase II study on the candidate.

The new phase II study will continue to evaluate both single-dose and prime-boost regimens of the candidate. Potential positive data from this study will support a phase III study, planned to begin in the second quarter. The company may provide an update on the progress of the phase II study on its fourth-quarter earnings call.

The company is developing OTC therapeutic candidate, ARCT-810, in two early-stage studies. Investors may ask questions on the future path for the candidate’s development on the earnings call.

During the quarter, the company planned to progress a new pipeline candidate, ARCT-032, to clinical-stage development for treating cystic fibrosis. Ongoing clinical studies and preparation for new clinical studies are likely to have driven operating expenses during the fourth quarter. However, the company may have recorded grant revenues, which are likely to have partially offset the increase in operating expense.

Meanwhile, the company records revenues from its strategic alliances and collaborations. However, revenues from these sources vary every quarter.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Arcturus this earnings season. 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. But that is not the case here.

Earnings ESP:

Arcturus has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 92 cents per share.You can uncover the best stocks to buy or sell before they’re reported with our

Earnings ESP Filter

.

Zacks Rank:

Arcturus carries a Zacks Rank #4 (Sell).

Stocks That Warrant a Look

Here are some biotech stocks that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.

Moderna, Inc.


MRNA

has an Earnings ESP of +0.57% and a Zacks Rank #2. You can see


the complete list of today’s Zacks #1 Rank stocks here


.

Clearside Biomedical, Inc.


CLSD

has an Earnings ESP of +4.35% and a Zacks Rank #2.

Lexicon Pharmaceuticals, Inc.


LXRX

has an Earnings ESP of +3.57% and a Zacks Rank #2.

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