3 Biotech Stocks Likely to Outpace Q2 Earnings Estimates

As we near the end of the ongoing earnings season, the scorecard for the Medical sector appears pretty decent. The sector primarily comprises pharma/biotech and medical device companies. Almost all the large biotech companies have already reported second-quarter earnings, which have been pretty good.

Gilead Sciences, Inc. (GILD) posted better-than-expected second-quarter 2025 results and upped its annual guidance. Amgen’s second-quarter results were strong as it beat on both earnings and sales and raised its revenue and earnings outlook for 2025. Regeneron, too, beat on earnings and sales, which was encouraging, and managed to post year-over-year revenue growth despite declining sales of lead drug Eylea. Biogen’s second-quarter results were strong as well, as its top and bottom-line figures beat estimates. The company upped its full-year 2025 guidance.

Zeroing in on Winners

Even though most of the companies from the biotech sector have already announced results, there are a few due to report. Some of them seem poised to surpass estimates for the quarter. Here we have highlighted three biotech companies, which are expected to deliver an earnings surprise in their upcoming quarterly results.

Earnings ESP is our proprietary methodology for determining the stocks with the best chance to deliver an earnings surprise. Earnings ESP shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.

According to the Zacks model, 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. The selection can be made with the help of the Zacks Stock Screener.

Our research shows that for stocks with this combination, the chance of an earnings surprise is as high as 70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

3 Biotech Stocks That Match the Criteria

Zevra Therapeutics (ZVRA), a commercial-stage company, is focused on providing therapies for rare diseases. The FDA approval of Miplyffa (arimoclomol), an orally delivered treatment for Niemann-Pick disease type C (NPC), has strengthened ZVRA’s portfolio. The initial uptake has been strong. Zevra recently submitted a Marketing Authorization Application to the European Medicines Agency for the evaluation of arimoclomol for the treatment of NPC. In April 2025, Zevra sold its Pediatric Rare Disease Priority Review Voucher (“PRV”) for gross proceeds of $150 million, which has strengthened its cash position. ZVRA’s other commercial stage asset, Olpruva (sodium phenylbutyrate) for oral suspension, is approved by the FDA for the treatment of certain urea cycle disorders.

ZVRA has an Earnings ESP of +58.04% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for second-quarter EPS is pegged at $1.43. Zevra is scheduled to report second-quarter earnings on Aug. 12, 2025. The stock has risen 44.2% so far this year.

Zevra Therapeutics, Inc. Price, Consensus and EPS Surprise

Zevra Therapeutics, Inc. price-consensus-eps-surprise-chart | Zevra Therapeutics, Inc. Quote

Inovio Pharmaceuticals, Inc. (INO) is a clinical-stage biotechnology company focused on developing and commercializing DNA medicines to help treat and protect people from HPV associated diseases, cancer and infectious diseases. The company’s lead pipeline candidate, INO-3107, is being developed for the treatment of recurrent respiratory papillomatosis, a chronic, rare and debilitating disease caused by HPV-6 and HPV-11. INO is currently on track to begin a rolling submission of the biologics license application (BLA) shortly and request priority review, with a goal of receiving file acceptance by the FDA by the end of 2025.

INO has an Earnings ESP of +10.76% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter loss per share is pinned at 63 cents. INO is scheduled to report second-quarter earnings on Aug. 12, 2025. Inovio beat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 18.53%.

Inovio Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

Inovio Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Inovio Pharmaceuticals, Inc. Quote

Journey Medical Corporation (DERM) is a commercial-stage pharmaceutical company that primarily focuses on selling and marketing pharmaceutical products for the treatment of dermatological conditions. DERM markets eight branded FDA-approved prescription drugs that help treat and heal common skin conditions. The launch of Emrosi, its best-in-class oral rosacea treatment, is off to a strong start.

DERM has an Earnings ESP of +14.29% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter loss is pegged at 7 cents per share.

Journey Medical Corporation Price, Consensus and EPS Surprise

Journey Medical Corporation price-consensus-eps-surprise-chart | Journey Medical Corporation Quote

DERM beat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 44.36%. Journey Medical is scheduled to report second-quarter results on Aug. 12, 2025.

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

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