Earnings Update: Strong Performance in the Medical Sector

As we approach the conclusion of the current earnings season, the Medical sector is showing promising results. This sector includes a variety of companies, such as pharmaceuticals, biotechnology, and medical devices. Most of the major biotech firms have already revealed their second-quarter earnings, which, overall, are looking quite favorable.

Highlighting the Leaders

Several biotech firms are still set to release their quarterly results, and some are expected to exceed analyst predictions. Here, we spotlight three biotech companies likely to produce a positive earnings surprise in their upcoming reports.

Earnings ESP is a proprietary method we use to identify stocks that are more likely to beat earnings estimates. This metric calculates the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. According to our model, a combination of a positive Earnings ESP and a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) significantly enhances the likelihood of an earnings beat. This selection process can be facilitated with the help of the Zacks Stock Screener.

Research indicates that stocks meeting these criteria have a whopping 70% chance of delivering an earnings surprise. You can discover the best stocks to consider for trading before earnings reports through our Earnings ESP Filter.

Three Promising Biotech Stocks

Zevra Therapeutics (ZVRA) is a commercial-stage company that is dedicated to developing treatments for rare diseases. Recently, the FDA granted approval for Miplyffa (arimoclomol), an oral therapy for Niemann-Pick Disease Type C (NPC), bolstering ZVRA’s portfolio. The initial market response has been encouraging. Additionally, Zevra has submitted a Marketing Authorization Application to the European Medicines Agency for arimoclomol. Earlier this year, Zevra sold its Pediatric Rare Disease Priority Review Voucher for $150 million, which has strengthened its financial position. Another product in its portfolio, Olpruva (sodium phenylbutyrate) for oral suspension, has also received FDA approval for specific urea cycle disorders.

Currently, ZVRA boasts an Earnings ESP of +58.04% and holds a Zacks Rank of #3. Analysts estimate that the consensus for second-quarter EPS is $1.43, with the earnings release scheduled for August 12, 2025. The stock has appreciated 44.2% thus far this year.

Inovio Pharmaceuticals (INO) is a clinical-stage biotech company focused on pioneering DNA medicines aimed at treating HPV-related diseases, cancer, and infectious diseases. INO’s leading candidate, INO-3107, is aimed at treating recurrent respiratory papillomatosis, a chronic and rare condition linked to HPV-6 and HPV-11. The company is poised to begin a rolling submission for a biologics license application (BLA) very soon and aims to get FDA acceptance by the end of 2025.

With an Earnings ESP of +10.76%, INO also has a Zacks Rank #3 at this time. Analysts anticipate a consensus estimate for the second-quarter loss per share to be 63 cents. Inovio will report its earnings on August 12, 2025, and has delivered positive earnings in three out of the last four quarters, achieving an average surprise of 18.53%.

Journey Medical Corporation (DERM) is a commercial-stage pharmaceutical company primarily engaged in marketing and selling products for dermatological issues. DERM has eight FDA-approved prescription products aimed at treating standard skin conditions. The launch of Emrosi, an oral medication for rosacea, has gotten off to a solid start.

Currently, DERM has an Earnings ESP of +14.29% and maintains a Zacks Rank #3. The consensus estimate for the second-quarter loss is projected at 7 cents per share. Journey Medical has achieved earnings beats in three of its previous four quarters, with an average surprise of 44.36%. The upcoming earnings report is also scheduled for August 12, 2025.

In summary, the Medical sector is experiencing a strong earnings season, with several companies poised for favorable results. As the quarter closes, all eyes will be on these biotech firms to see if they can deliver on investor expectations.