Pharmacyclics, Inc. (PCYC) will report earnings results on Thursday, March 15, 2012, after the market close.
PCYC is expected to lose $0.22 for its 2nd quarter. Top Equity News expects the biotech to report earnings that will beat Wall Street’s expectations. This is usually where we offer our estimate. However, Pharmacyclics story is more likely to be about forward guidance than what it earned in the last 90 days.
Early in February, analysts started dramatically jacking up their 2012 outlooks. Three of seven analyst following PCYC moved their estimates up from as low as a loss of 87 cents to high of a profit of 36 cents. That’s a move of more than a $1, and VERY unusual. Clearly, Wall Street has its ear to the ground and believes something significant is on the way, and it’s the monster revisions that are intriguing to TEN.
This trade is for high risk investors only; the type who are willing to accept hefty losses for the potential of bigger gains. Pharmacyclics has disappointed the street four of its last five quarterly profit checkups. Each time they missed the stock got beat around a little, dropping from 2.5% to 13.7%. However, last time out PCYC topped the consensus and shares rocketed 29.7%.
With the February earnings revisions, the stock popped from $18 to $25 in a hurry. Since then, it’s yo-yoed up and down, but has basically run in place. The stock is set up to match the pole leg of early February if management delivers the goods.
I four hunch is correct, Top Equity can see PCYC gaining $5-$7%. A close under $24 and we are outta of here.
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