We expect investors to focus on updates related to Viking Therapeutics’ VKTX pipeline when it reports first-quarter 2025 results on April 23, after market close. In the last reported quarter, the company’s earnings missed expectations by about 19%.

Since the company lacks a marketed drug in its portfolio, we do not expect it to record revenues. The Zacks Consensus Estimate for earnings is pegged at a loss of 34 cents per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar)

Factors Shaping VKTX’s Upcoming Results

With no approved/marketed product in its portfolio, the focus of the first-quarter investor call will be on updates related to Viking's pipeline, which includes three candidates — VK2735 (for obesity), VK2809 (for non-alcoholic steatohepatitis [NASH]) and VK0214 (for X-linked adrenoleukodystrophy [X-ALD]).

Last month, Viking announced that it has completed enrolment in the phase II VENTURE-Oral Dosing study evaluating the oral version of VK2735 over a 13-week treatment period. In our opinion, this announcement marks a milestone for the company since the study’s initiation was declared in January. The quick recruitment indicates high patient and physician enthusiasm, which could translate into significant commercial potential if the drug proves effective and safe. Data from this study is expected before this year’s end.

VKTX also reiterated its plan to start a late-stage study on the subcutaneous (SC) formulation of VK2735 by the first half of 2025. Investors would likely seek an update from the company on this late-stage study’s design.

They would also seek an update from the company on its progress in advancing the internally developed dual amylin and calcitonin receptor agonist (DACRA) candidate to clinical development. VKTX had previously announced plans to file an investigational new drug (IND) application for this candidate in the obesity indication before the end of this year.

We also expect the company to provide updates on its NASH and X-ALD drugs, including progress on the collaboration prospects for both drugs.

Earnings Surprise History

Viking’s earnings performance has been mixed over the trailing four quarters. The company’s earnings beat estimates in three of the last four quarters while missing the mark on one occasion, delivering an average surprise of 4.15%.

Viking’s shares have plunged nearly 41% year to date compared with the industry’s 8% decline.

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Earnings Whispers

Our proven model does not predict an earnings beat for Viking 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. That is not thecase here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: Viking has an Earnings ESP of 0.00% as both the Most Accurate Estimate and Zacks Consensus Estimate are pegged at a loss of 34 cents per share.

Zacks Rank: Viking currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are a few stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

argenx ARGX has an Earnings ESP of +12.88% and a Zacks Rank #2 at present.

argenx stock has lost 3% year to date. It beat on earnings in two of the last four quarters and missed in the other two, delivering an average surprise of 345.11%.

CytomX Therapeutics CTMX has an Earnings ESP of +38.89% and a Zacks Rank #2 at present.

CytomX Therapeutics’ shares have plunged 36% year to date. CytomXbeat on earnings in three of the trailing four quarters and missed in the other one, delivering an average surprise of 180.70%.

Novavax NVAX has an Earnings ESP of +495.75% and a Zacks Rank #3 at present.

Shares of Novavax have lost 25% in the year-to-date period. The company’s earningsbeat estimates in two of the trailing four quarters and missed in the other two, delivering an average negative surprise of 0.48%.

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

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