We expect investors to focus on updates related to Sol-Gel Technologies, Ltd.’s SLGL ability to regain compliance with the recent Nasdaq requirement and other pipeline development activities when it reports fourth-quarter and full-year 2024 results. The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $2 million. The consensus estimate for the bottom line is pegged at a loss of 11 cents per share.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

In the past year, shares of Sol-Gel have plunged 46.2% against the industry’s rise of 1.9%.

Image Source: Zacks Investment Research

Let’s see how things might have shaped up prior to the announcement.

Factors to Note Ahead of SLGL's Q4 Results

Sol-Gel has developed Twyneo, which is approved by the FDA for the treatment of acne vulgaris in adults and pediatric patients aged nine years and above. It has also developed Epsolay, which is approved by the FDA for the treatment of inflammatory lesions of rosacea in adults.

Sol-Gel has signed license agreements for Twyneo and Epsolay in various countries worldwide, under which it is entitled to royalties and certain milestones.

The company also has an agreement with Padagis for the development and commercialization of a generic drug product to Zoryve Cream (roflumilast cream 0.3%).

The company’s top line currently comprises licensing revenues from its partners, namely Padagis, Galderma and Searchlight Pharma.

Revenues in the to-be-reported quarter are likely to have been driven by higher licensing revenues from these partners as well as revenues from other new license agreements.

SLGL’s key pipeline candidate is SGT-610, which is in phase III development for the treatment of Gorlin Syndrome. Top-line data from the same is expected in the second half of 2026.

The company is also conducting a proof-of-concept study for SGT-210 for treating patients with Darier disease.

Activities related to the research and development of the pipeline candidates might have escalated operating expenses in the to-be-reported quarter.

In November 2024, Sol-Gel received a letter from Nasdaq notifying the company about transferring the listing of its ordinary shares from The Nasdaq Global Market to The Nasdaq Capital Market. While Sol-Gel has not regained compliance with the Minimum Bid Price Requirement, Nasdaq has determined that the company is eligible for an additional 180 calendar day period, or until May 19, 2025, to regain compliance.

We expect management to provide a thorough update on the same on the fourth-quarter earnings call.

Earnings Surprise History

Sol-Gel has a mixed history of earnings surprises. The company beat on earnings in two of the trailing four quarters while missing the same on the remaining two occasions, delivering an average surprise of 41.93%. In the last reported quarter, SLGL posted an earnings surprise of 92.31%.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for SLGL 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. That is not the case here, as you will see below.

Earnings ESP: Sol-Gel’s Earnings ESP is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 11 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: SLGL has a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Pacira BioSciences, Inc. PCRX has an Earnings ESP of +2.34% and a Zacks Rank #1 at present.

Shares of PCRX have declined 15.1% in the past year. PCRX beat earnings estimates in two of the trailing four quarters, met once and missed the same on the remaining occasion, delivering an average surprise of 7.13%. Pacira is scheduled to report fourth-quarter results on Feb. 27.

Mirum Pharmaceuticals, Inc. MIRM has an Earnings ESP of +24.63% and a Zacks Rank #2 at present.

Shares of MIRM have surged 75.3% in the past year. MIRM beat on earnings in one of the trailing four quarters while missing the same on the remaining three occasions, delivering an average negative surprise of 26.03%. Mirum is scheduled to report fourth-quarter results on Feb. 26.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Pacira BioSciences, Inc. (PCRX) : Free Stock Analysis Report

Sol-Gel Technologies Ltd. (SLGL) : Free Stock Analysis Report

Mirum Pharmaceuticals, Inc. (MIRM) : Free Stock Analysis Report

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

Zacks Investment Research