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Drug/Biotech Stock Q4 Earnings Due on Feb 4: BMY, REGN & SNY
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The fourth-quarter reporting cycle of the Medical sector is currently in full swing. The sector mainly comprises pharma/biotech and medical device companies.
Quite a few giants in the Medical sector have reported their results. Per the Earnings Trends report, as of Feb 2, 33.9% of the companies in the Medical sector — which represent nearly 53.7% of the sector’s market capitalization — have reported their quarterly earnings. While 63.2% beat earnings estimates, 57.9% beat the same for revenues. Earnings increased 10% year over year on 12.1% higher revenues. Overall, fourth-quarter earnings of the Medical sector are expected to rise 18.4% on a 12.8% sales increase.
The earnings season kicked off last week, starting with bellwether Johnson & Johnson (JNJ - Free Report) , followed by large-cap biotech Vertex. Earlier this week, big companies like AbbVie, Gilead, Novo Nordisk and Novartis also announced Q4 earnings.
AbbVie and J&J reported mixed results, with earnings beating estimates but sales missing the same. Vertex’s results were encouraging as it beat both earnings and sales estimates. Although Gilead beat sales estimates, it missed the same for earnings due to the payment of more than a billion dollars in a legal settlement. Novo Nordisk beat estimates on both counts, while Novartis missed estimates on both counts. We note that key drugs in the portfolios of these companies demonstrated robust growth in sales.
With regard to other pharma/biotech companies, Bristol Myers (BMY - Free Report) , Regeneron Pharmaceuticals (REGN - Free Report) and Sanofi (SNY - Free Report) are scheduled to release their Q4 earnings on Feb 4, before market open.
Let’s analyze the performance of the above three biotech/pharma companies.
Bristol Myers
Bristol-Myers beat earnings estimates in three of the last four quarters and missed in one, with the average surprise being 2.7%. In the last reported quarter, BMY beat earnings estimates by 4.7%.
Per our proven 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Our model does not conclusively predict an earnings beat for Bristol Myers this time around. For the quarter to be reported, Bristol Myers has an Earnings ESP of -0.54% and a Zacks Rank #3 (Hold).
Bristol-Myers’ multiple myeloma drug Revlimid, immune-oncology drug Opdivo and blood thinner drug Eliquis are likely to have been key top-line drivers backed by strong demand trends in the to-be-reported quarter. (Read more: Bristol-Myers to Post Q4 Earnings: What's in Store?)
Bristol Myers Squibb Company Price and EPS Surprise
Regeneron beat earnings estimates in each of the trailing four quarters, with the average being 28.9%. In the last reported quarter, the company’s earnings beat estimates by 56.7%.
Regeneron is likely to beat estimates in the soon-to-be reported quarter as the company has an Earnings ESP of +13.29% and a Zacks Rank #3.
Our previous article showed that Regeneron did not have the favorable combination to beat on earnings in the soon-to-be-reported quarter. However, estimates changed thereafter and we are more certain of a beat now.
The Zacks Consensus Estimate for earnings stands at $18.49 per share.
Strong performance of lead drug Eylea and asthma drug Dupixent is likely to have maintained momentum for REGN in the quarter. Libtayo too might have boosted sales in the quarter. (Read more: Will Eylea, Dupixent Aid Regeneron's Q4 Earnings?)
Regeneron Pharmaceuticals, Inc. Price and EPS Surprise
Sanofi beat earnings estimates in three of the trailing four quarters and missed the same in one, with the average surprise being 3.6%. In the last reported quarter, the company’s earnings beat estimates by 9.3%.
SNY has an Earnings ESP of -3.36% and a Zacks Rank #5 (Strong Sell). The Zacks Consensus Estimate for earnings stands at $0.75 per ADS.
Dupixent, which Sanofi markets in partnership with Regeneron, is expected to be its key top-line driver in the fourth quarter.
Image: Bigstock
Drug/Biotech Stock Q4 Earnings Due on Feb 4: BMY, REGN & SNY
The fourth-quarter reporting cycle of the Medical sector is currently in full swing. The sector mainly comprises pharma/biotech and medical device companies.
Quite a few giants in the Medical sector have reported their results. Per the Earnings Trends report, as of Feb 2, 33.9% of the companies in the Medical sector — which represent nearly 53.7% of the sector’s market capitalization — have reported their quarterly earnings. While 63.2% beat earnings estimates, 57.9% beat the same for revenues. Earnings increased 10% year over year on 12.1% higher revenues. Overall, fourth-quarter earnings of the Medical sector are expected to rise 18.4% on a 12.8% sales increase.
The earnings season kicked off last week, starting with bellwether Johnson & Johnson (JNJ - Free Report) , followed by large-cap biotech Vertex. Earlier this week, big companies like AbbVie, Gilead, Novo Nordisk and Novartis also announced Q4 earnings.
AbbVie and J&J reported mixed results, with earnings beating estimates but sales missing the same. Vertex’s results were encouraging as it beat both earnings and sales estimates. Although Gilead beat sales estimates, it missed the same for earnings due to the payment of more than a billion dollars in a legal settlement. Novo Nordisk beat estimates on both counts, while Novartis missed estimates on both counts. We note that key drugs in the portfolios of these companies demonstrated robust growth in sales.
With regard to other pharma/biotech companies, Bristol Myers (BMY - Free Report) , Regeneron Pharmaceuticals (REGN - Free Report) and Sanofi (SNY - Free Report) are scheduled to release their Q4 earnings on Feb 4, before market open.
Let’s analyze the performance of the above three biotech/pharma companies.
Bristol Myers
Bristol-Myers beat earnings estimates in three of the last four quarters and missed in one, with the average surprise being 2.7%. In the last reported quarter, BMY beat earnings estimates by 4.7%.
Per our proven 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Our model does not conclusively predict an earnings beat for Bristol Myers this time around. For the quarter to be reported, Bristol Myers has an Earnings ESP of -0.54% and a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for earnings stands at $1.84 per share. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bristol-Myers’ multiple myeloma drug Revlimid, immune-oncology drug Opdivo and blood thinner drug Eliquis are likely to have been key top-line drivers backed by strong demand trends in the to-be-reported quarter. (Read more: Bristol-Myers to Post Q4 Earnings: What's in Store?)
Bristol Myers Squibb Company Price and EPS Surprise
Bristol Myers Squibb Company price-eps-surprise | Bristol Myers Squibb Company Quote
Regeneron Pharmaceuticals
Regeneron beat earnings estimates in each of the trailing four quarters, with the average being 28.9%. In the last reported quarter, the company’s earnings beat estimates by 56.7%.
Regeneron is likely to beat estimates in the soon-to-be reported quarter as the company has an Earnings ESP of +13.29% and a Zacks Rank #3.
Our previous article showed that Regeneron did not have the favorable combination to beat on earnings in the soon-to-be-reported quarter. However, estimates changed thereafter and we are more certain of a beat now.
The Zacks Consensus Estimate for earnings stands at $18.49 per share.
Strong performance of lead drug Eylea and asthma drug Dupixent is likely to have maintained momentum for REGN in the quarter. Libtayo too might have boosted sales in the quarter. (Read more: Will Eylea, Dupixent Aid Regeneron's Q4 Earnings?)
Regeneron Pharmaceuticals, Inc. Price and EPS Surprise
Regeneron Pharmaceuticals, Inc. price-eps-surprise | Regeneron Pharmaceuticals, Inc. Quote
Sanofi
Sanofi beat earnings estimates in three of the trailing four quarters and missed the same in one, with the average surprise being 3.6%. In the last reported quarter, the company’s earnings beat estimates by 9.3%.
SNY has an Earnings ESP of -3.36% and a Zacks Rank #5 (Strong Sell). The Zacks Consensus Estimate for earnings stands at $0.75 per ADS.
Dupixent, which Sanofi markets in partnership with Regeneron, is expected to be its key top-line driver in the fourth quarter.
Sanofi Price and EPS Surprise
Sanofi price-eps-surprise | Sanofi Quote
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