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Incyte (INCY) to Report Q2 Earnings: What's in the Cards?
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Incyte Corporation (INCY - Free Report) is scheduled to release second-quarter 2023 results on Aug 1, before market open.
The company's earnings beat estimates in two of the trailing four quarters and missed the same in the other two, delivering an average negative surprise of 10.05%. In the last reported quarter, Incyte’s earnings missed estimates by 56.47%.
Shares of the company have lost 21.8% in the year-to-date period compared with the industry's 11.3% decline.
Image Source: Zacks Investment Research
Let's see how things might have shaped up for the quarter to be reported.
Factors to Consider
Incyte primarily derives product revenues from sales of its lead drug, Jakafi (ruxolitinib), in the United States, and its other marketed drugs.
Increase in sales of Jakafi, a first-in-class JAK1/JAK2 inhibitor in all approved indications (polycythemia vera, myelofibrosis and refractory acute graft-versus-host disease [GvHD]), is likely to have boosted revenues in the second quarter. Sales increased 7% year over year in the first quarter. This trend might have continued in the to-be-reported quarter. The Zacks Consensus Estimate for Jakafi's sales is pinned at $648.44 million.
The company also earns product royalty revenues from Novartis AG (NVS - Free Report) for the commercialization of Jakafi in non-U.S. markets. Novartis licensed ruxolitinib for its development and commercialization outside the United States.
While Incyte markets Jakafi in the United States, Novartis promotes the same drug as Jakavi outside the country. INCY is expected to have received higher royalties from NVS in the second quarter on higher Jakavi sales. For the second quarter, Novartis reported a strong performance by Jakavi. The drug generated sales of $435 million on constant currency basis.
Incyte also receives royalties from the sales of Tabrecta (capmatinib), which is approved for the treatment of adult patients with metastatic non-small cell lung cancer. Novartis has exclusive worldwide development and commercialization rights to Tabrecta.
While Jakafi’s sales and royalties are the key catalysts for INCY’s revenue growth, Iclusig’s sales and Olumiant’s royalties from Eli Lilly are likely to have contributed to the company’s top line in the to-be-reported quarter. The Zacks Consensus Estimate for Iclusig’s product revenues and Olumiant’s royalties is pegged at $26.53 million and $36.83 million, respectively.
Incremental sales from newly approved drugs like Opzelura and Zynyz are expected to have boosted sales. The adoption of other newly approved drugs like Monjuvi and Pemazyre is also likely to have bolstered the company’s top-line performance.
Total costs and expenses increased year over year in the first quarter. This trend is expected to have continued in the second quarter owing to a rise in research and development expenses, selling, and general and administrative costs.
Recent Key Developments
In July, the company announced positive top-line results from the late-stage TRuE-AD3 study on Opzelura (ruxolitinib cream).The study successfully met its primary endpoint, demonstrating that a significantly higher number of patients treated with ruxolitinib cream achieved Investigator's Global Assessment Treatment Success compared to those treated with a non-medicated cream.
The positive results from the TRuE-AD3 study highlight the potential of ruxolitinib cream in providing an effective non-steroidal topical therapy for children suffering from atopic dermatitis.
Earnings Whisper
Our proven model does not predict an earnings beat for Incyte 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. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: Incyte has an Earnings ESP of -6.51% as the Most Accurate Estimate of 82 cents per share is lower than the Zacks Consensus Estimate of 88 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Here are a couple of stocks worth considering from the overall healthcare space as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
ACADIA Pharmaceuticals (ACAD - Free Report) ) has an Earnings ESP of +38.26% and a Zacks Rank #2 at present.
ACAD’s shares have rallied 83.2% in the year-to-date period. Its earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average negative surprise of 2.75%. The company will report second-quarter earnings on Aug 2, after market close.
AstraZeneca (AZN - Free Report) has an Earnings ESP of +1.88% and a Zacks Rank #3 at present.
AZN’s shares have rallied 2.3% year to date. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 8.11%. The company will report second-quarter earnings on Jul 28, before market open.
Image: Bigstock
Incyte (INCY) to Report Q2 Earnings: What's in the Cards?
Incyte Corporation (INCY - Free Report) is scheduled to release second-quarter 2023 results on Aug 1, before market open.
The company's earnings beat estimates in two of the trailing four quarters and missed the same in the other two, delivering an average negative surprise of 10.05%. In the last reported quarter, Incyte’s earnings missed estimates by 56.47%.
Shares of the company have lost 21.8% in the year-to-date period compared with the industry's 11.3% decline.
Image Source: Zacks Investment Research
Let's see how things might have shaped up for the quarter to be reported.
Factors to Consider
Incyte primarily derives product revenues from sales of its lead drug, Jakafi (ruxolitinib), in the United States, and its other marketed drugs.
Increase in sales of Jakafi, a first-in-class JAK1/JAK2 inhibitor in all approved indications (polycythemia vera, myelofibrosis and refractory acute graft-versus-host disease [GvHD]), is likely to have boosted revenues in the second quarter. Sales increased 7% year over year in the first quarter. This trend might have continued in the to-be-reported quarter. The Zacks Consensus Estimate for Jakafi's sales is pinned at $648.44 million.
The company also earns product royalty revenues from Novartis AG (NVS - Free Report) for the commercialization of Jakafi in non-U.S. markets. Novartis licensed ruxolitinib for its development and commercialization outside the United States.
While Incyte markets Jakafi in the United States, Novartis promotes the same drug as Jakavi outside the country. INCY is expected to have received higher royalties from NVS in the second quarter on higher Jakavi sales. For the second quarter, Novartis reported a strong performance by Jakavi. The drug generated sales of $435 million on constant currency basis.
Incyte also receives royalties from the sales of Tabrecta (capmatinib), which is approved for the treatment of adult patients with metastatic non-small cell lung cancer. Novartis has exclusive worldwide development and commercialization rights to Tabrecta.
While Jakafi’s sales and royalties are the key catalysts for INCY’s revenue growth, Iclusig’s sales and Olumiant’s royalties from Eli Lilly are likely to have contributed to the company’s top line in the to-be-reported quarter. The Zacks Consensus Estimate for Iclusig’s product revenues and Olumiant’s royalties is pegged at $26.53 million and $36.83 million, respectively.
Incremental sales from newly approved drugs like Opzelura and Zynyz are expected to have boosted sales. The adoption of other newly approved drugs like Monjuvi and Pemazyre is also likely to have bolstered the company’s top-line performance.
Total costs and expenses increased year over year in the first quarter. This trend is expected to have continued in the second quarter owing to a rise in research and development expenses, selling, and general and administrative costs.
Recent Key Developments
In July, the company announced positive top-line results from the late-stage TRuE-AD3 study on Opzelura (ruxolitinib cream).The study successfully met its primary endpoint, demonstrating that a significantly higher number of patients treated with ruxolitinib cream achieved Investigator's Global Assessment Treatment Success compared to those treated with a non-medicated cream.
The positive results from the TRuE-AD3 study highlight the potential of ruxolitinib cream in providing an effective non-steroidal topical therapy for children suffering from atopic dermatitis.
Earnings Whisper
Our proven model does not predict an earnings beat for Incyte 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. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: Incyte has an Earnings ESP of -6.51% as the Most Accurate Estimate of 82 cents per share is lower than the Zacks Consensus Estimate of 88 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: Incyte currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Incyte Corporation Price and EPS Surprise
Incyte Corporation price-eps-surprise | Incyte Corporation Quote
Stocks to Consider
Here are a couple of stocks worth considering from the overall healthcare space as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
ACADIA Pharmaceuticals (ACAD - Free Report) ) has an Earnings ESP of +38.26% and a Zacks Rank #2 at present.
ACAD’s shares have rallied 83.2% in the year-to-date period. Its earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average negative surprise of 2.75%. The company will report second-quarter earnings on Aug 2, after market close.
AstraZeneca (AZN - Free Report) has an Earnings ESP of +1.88% and a Zacks Rank #3 at present.
AZN’s shares have rallied 2.3% year to date. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 8.11%. The company will report second-quarter earnings on Jul 28, before market open.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.