How To Play Lexicon Pharmaceuticals, Inc. (LXRX)’s Earnings Report

33 days have passed by since the last earnings report for Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) and the new quarterly results look set to arrive in 66 days. The shares of LXRX at the moment are trading at a volume of 0.48 million, which compares with its normal daily standard volume of 1183181 shares. This has led to the shares of the company declining by 0%, currently exchanging hands at $1.32 a share. LXRX stock has been up by $10.27 (-88.89%) ever since it reached its 52-week high of $11.59 back in August 30, 2018. It has progressed below its 50-day moving average of $2.5586 and is up 1.54% over the past week. The stock has retreated -20.5% since the last one arrived so the question here is that will the downbeat trend in that time frame continue leading up to its next earnings release, or is the LXRX share price due for a breakout?

Lexicon Pharmaceuticals, Inc. (LXRX) Forecasts And Latest Quarter Earnings

Ahead of their fiscal third-quarter to be released on Thursday, Nov 07, 2019, 5 analysts who are covering the company are estimating that it will record a profit of -$0.21 per share, with analysts having different outlooks from -$0.25 to -$0.17. The current agreed outlook, when compared to the profit recorded last year, is at -$0.26 a share, thus a decrease of -19.23% is expected. The profit view for a complete financial year for Lexicon Pharmaceuticals, Inc. is expected to be around -$0.75 in current year, a growth of nearly -34.21% from last year which was -$1.14.

Analyzing The Earnings History Of Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX)

In the past few years, the LXRX stock has been known to miss the Wall Street’s earnings projection. The company missed 8% of the time, according to the data pulled on their earnings, was able to meet predictions on 1 occasions and topped expectations 10 times. Looking at the past trend, the price of Lexicon Pharmaceuticals, Inc. shares had risen following the release of their earnings in 21 of the last 38 quarters.

Looking back, here is how Lexicon Pharmaceuticals, Inc. (LXRX) stock reacted to earnings misses and beats. It gave investors reason to be bullish with the price going down after 1 of the last four earnings reports. The shares of Lexicon Pharmaceuticals, Inc. recorded -18.67%, 2.93%, 9.62% and 6.26%, respectively, on the first day of past earnings releases. After a week of earnings reports, the changes were -19.28%, 21.21%, 8.79% and 13.03%. Their post-earnings price movements have resulted in an average increase of 0.03% and an average increase of 5.94% in Lexicon Pharmaceuticals, Inc. on next day and 7th day, sequentially. LXRX’s one month stock performance led to its shares rising by 0.76% with a return of -88.31% witnessed over the last 52 weeks.

The higher number of analysts at Reuters has assigned a buy or better ratings (3) on the Lexicon Pharmaceuticals, Inc. stock, while 2 of them have a rating of a Hold with the 11-year target price suggested by the analysts standing at $8. This price target implies potential upside of 506.06 percent over the next 12 months based on the current share price.

Lexicon Pharmaceuticals, Inc. (LXRX) Post Earnings Announcement Drift (PEAD)

Back on July 31, 2019, Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) released its Q2 results, in which it recorded a loss of -$0.22 that fell short of consensus estimates of -$0.08. After the earnings were reported, the price of LXRX stock kicked off the session at $1.34 and remained in a range of $1.53 to $1.55 on the first day. The shares were priced at $1.35 at the close with a total volume of shares being 5123685.

On May 01, 2019, the Q1 earnings report was disclosed with loss per share of -$0.21. This was above the estimation of -$0.22 per share. The stock price range of LXRX was between $5.82 and $6.33 on the first-day post announcement, after opening the day at $5.8. The session came to close at $5.97 and there was a total volume of 1064375 shares.

March 13, 2019 was the day when its Q4 results were unveiled. The loss came in at -$0.16, beating the projected -$0.29 per share. The very next day, LXRX stock opened at $7.21 while staying in a range of $7.69 to $8.39. At the end, it moved to $7.86 a total volume of shares been 1649252.

In the year-ago Q3 earnings on November 01, 2018, the company saw a loss per share of -$0.26. That was better than the -$0.33 analysts had expected. Lexicon Pharmaceuticals, Inc. share price started at $7.42 on the first full trading day post-earning and then exchanged hands between $7.42 and $8.87 throughout the session. The closing price of $8.32 came on the back of 869033 shares in volume.