We expect Halozyme Therapeutics HALO to beat expectations when it reports third-quarter 2026 results on Nov. 5, after market close. The Zacks Consensus Estimate for third-quarter sales and earnings is pegged at $480.7 million and $2.28 per share, respectively.
Let’s see how things might have shaped up before the announcement.
Year to date, shares of Halozyme have surged 94.9% compared with the industry’s rise of 8.4%.
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Factors Likely to Influence HALO's Q3 Results
Halozyme has collaboration agreements with large pharma companies that use its novel drug delivery technology, ENHANZE, for the development of subcutaneous (SC) formulations of their various marketed drugs. These agreements generate royalties on sales of marketed drugs, milestone payments and annual license fees, which comprise Halozyme’s top line.
Halozyme has several marketed partnered drugs based on this technology, including the SC formulation of J&J’s JNJ Darzalex, argenx’s Vyvgart Hytrulo and Roche’s Phesgo.
Halozyme’s top line in the third quarter is likely to have been driven by higher royalty payments from J&J for SC Darzalex as well as argenx’s Vyvgart Hytrulo due to robust demand. Our model estimates Halozyme's revenues from royalties to increase at a CAGR of 16.2% over the next three years.
Halozyme has two commercial proprietary products, Hylenex and Xyosted, with the latter acquired from Antares Pharma in 2022. Incremental sales from these products are also likely to have boosted Halozyme’s revenues during the upcoming quarter.
Revenues under collaborative agreements increased substantially in the last quarter, a trend that is most likely to have continued in the third quarter.
Reflecting the strong business performance, Halozyme raised its full-year 2026 financial outlook. The company now expects total revenues in the range of $1.84-$1.91 billion in 2026, representing year-over-year growth of 31% to 37%. Royalty revenues are expected to reach $1.13-$1.17 billion in 2026, representing year-over-year growth of 41% to 43%.
Investors will be keen to know whether the company increases the guidance further or maintains it on the upcoming earnings call.
HALO’s Earnings Surprise History
Halozyme has a mixed history of earnings surprises. The company beat on earnings in three of the trailing four quarters while missing the same on the remaining occasion, delivering an average negative surprise of 19.12%. In the last reported quarter, HALO posted an earnings surprise of 25.27%.
Halozyme Therapeutics, Inc. Price and EPS Surprise
Halozyme Therapeutics, Inc. price-eps-surprise | Halozyme Therapeutics, Inc. Quote
What Our Model Says for HALO
Our proven model predicts an earnings beat for Halozyme this time around. 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, which is the case here.
Earnings ESP: Halozyme’s Earnings ESP is +2.78%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Halozyme currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are two drug/biotech stocks that also have the right combination of elements to beat on earnings this time around:
Amneal Pharmaceuticals AMRX has an Earnings ESP of +4.17% and a Zacks Rank #2.
Amneal’s stock has surged 69.5% so far this year. AMRX beat estimates in each of the last four quarters. The company has a four-quarter earnings surprise of 32.82%, on average. Amneal is scheduled to report third-quarter results on Nov. 3.
Pfizer PFE has an Earnings ESP of +3.53% and a Zacks Rank #3 at present.
Shares of Pfizer have risen 26.5% so far this year. Pfizer beat earnings estimates in each of the last four reported quarters, delivering an average earnings surprise of 16.62%. Pfizer is scheduled to report third-quarter results on Nov. 3.
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Halozyme Therapeutics, Inc. (HALO): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).