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Will These 5 Medical Stocks Surpass Q2 Earnings Forecasts?
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The second-quarter 2024 reporting cycle of the Medical sector is about to pick up pace this week. The sector mainly comprises pharma/biotech and medical device companies.
The earnings season for the drug and biotech sector kicked off last week when bellwether Johnson & Johnson reported strong second-quarter results, beating estimates for earnings and sales.
Swiss pharma giant Novartis AG also reported better-than-expected second-quarter results. Consequently, Novartis increased its operating income growth guidance for 2024 while maintaining its expectations for 2024 net sales.
Per the Earnings Trends report, as of Jul 17, 5.1% of the companies in the Medical sector — representing 18.4% of the sector’s market capitalization — reported quarterly earnings. Of these, 100% outperformed both earnings and revenue estimates. Earnings increased 1.5% year over year, while revenues increased 1.7%. Overall, second-quarter earnings of the Medical sector are expected to increase 18.4%, while sales are expected to rise 7.2% from the year-ago quarter.
Viking Therapeutics (VKTX - Free Report) is slated to release its quarterly results after market close on Jul 24, while AstraZeneca (AZN - Free Report) , Sanofi (SNY - Free Report) and AbbVie (ABBV - Free Report) are scheduled to release their second-quarter earnings reports before the opening bell on Jul 25. The following day, i.e., on Jul 26, Bristol Myers (BMY - Free Report) is slated to release its second-quarter results before market open.
Let’s see how these biotech/pharma companies are likely to have performed in the soon-to-be-reported quarter.
Viking Therapeutics
Viking has a mixed earnings track record over the trailing four quarters. The company’s earnings beat estimates in two of the last four quarters, missed the mark once and met the same on another. On average, VKTX registered an earnings surprise of 2.17% in the last four quarters. In the last reported quarter, Viking beat earnings estimates by 3.7%.
Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) have a good chance of delivering an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for Viking’s bottom line is pegged at a loss of 26 cents per share.
In the absence of an approved/marketed product in its portfolio, the focus is expected to be on updates related to Viking's pipeline consisting of three candidates — VK2735 (for obesity), VK2809 (for non-alcoholic steatohepatitis) and VK0214 (for X-linked adrenoleukodystrophy).
AstraZeneca has a mixed earnings track recordover the trailing four quarters. The company’s earnings beat estimates in three of the last four quarters, missing the mark on one occasion. On average, AZN registered an earnings surprise of 6.79% in the last four quarters. In the last reported quarter, AstraZeneca beat earnings estimates by 8.42%.
For the quarter to be reported, AstraZeneca has an Earnings ESP of -0.42% and a Zacks Rank #3. The Zacks Consensus Estimate for AZN’s earnings is pegged at 96 cents per share.
Sales of AstraZeneca’s key medicines, mainly cancer drugs — Lynparza, Tagrisso and Imfinzi — and diabetes medicine Farxiga, are expected to have primarily driven the company’s top line in the second quarter, backed by strong demand trends.
Sanofi has a mixed earnings record history so far. It beat earnings estimates in two of the last four quarters, matching once and missing the mark on the remaining occasion. In the past four quarters, SNY delivered an average earnings surprise of 1.02%. In the last reported quarter, SNY’s earnings matched estimates.
For the quarter to be reported, Sanofi has an Earnings ESP of +1.37% and a Zacks Rank #3, which suggests that the stock is poised for an earnings beat this time around. The Zacks Consensus Estimate for Sanofi’s earnings is pegged at 88 cents per share.
In the upcoming earnings release, SNY’s revenues are likely to have been driven by higher sales of Dupixent and contributions from new products like AstraZeneca-partnered Beyfortus, Nexviazyme and Altuviiio. However, the impact of generic competition on Aubagio sales in all key markets and the soft sales performance of the Vaccine segment are likely to have hurt revenues in the second quarter of 2024.
AbbVie has an impeccable earnings track record to date. ABBV’s earnings beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 2.69%. In the last reported quarter, AbbVie’s earnings beat estimates by 2.21%.
For the quarter to be reported, AbbVie has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate is pegged at $2.56 per share.
AbbVie’s top line is expected to have been driven by sales of new immunology drugs, Skyrizi and Rinvoq, which registered strong growth in the past few quarters, mainly due to approvals in new indications.During the quarter, the FDA expanded Skyrizi’s label in ulcerative colitis indication, which is likely to have boosted sales in the second quarter.
Bristol Myers has a mixed earnings track record. BMY’s earnings beat estimates in three of the trailing four quarters, missing the mark on one occasion, delivering an average surprise of 4.18%. In the last reported quarter, Bristol Myers’ earnings surpassed estimates by 3.3%.
For the quarter to be reported, Bristol Myers has an Earnings ESP of -1.25% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s earnings is pegged at $1.64 per share.
Total revenues in the second quarter are likely to have seen an increase on the back of growth in Opdualag and Reblozyl.
Image: Bigstock
Will These 5 Medical Stocks Surpass Q2 Earnings Forecasts?
The second-quarter 2024 reporting cycle of the Medical sector is about to pick up pace this week. The sector mainly comprises pharma/biotech and medical device companies.
The earnings season for the drug and biotech sector kicked off last week when bellwether Johnson & Johnson reported strong second-quarter results, beating estimates for earnings and sales.
Swiss pharma giant Novartis AG also reported better-than-expected second-quarter results. Consequently, Novartis increased its operating income growth guidance for 2024 while maintaining its expectations for 2024 net sales.
Per the Earnings Trends report, as of Jul 17, 5.1% of the companies in the Medical sector — representing 18.4% of the sector’s market capitalization — reported quarterly earnings. Of these, 100% outperformed both earnings and revenue estimates. Earnings increased 1.5% year over year, while revenues increased 1.7%. Overall, second-quarter earnings of the Medical sector are expected to increase 18.4%, while sales are expected to rise 7.2% from the year-ago quarter.
Viking Therapeutics (VKTX - Free Report) is slated to release its quarterly results after market close on Jul 24, while AstraZeneca (AZN - Free Report) , Sanofi (SNY - Free Report) and AbbVie (ABBV - Free Report) are scheduled to release their second-quarter earnings reports before the opening bell on Jul 25. The following day, i.e., on Jul 26, Bristol Myers (BMY - Free Report) is slated to release its second-quarter results before market open.
Let’s see how these biotech/pharma companies are likely to have performed in the soon-to-be-reported quarter.
Viking Therapeutics
Viking has a mixed earnings track record over the trailing four quarters. The company’s earnings beat estimates in two of the last four quarters, missed the mark once and met the same on another. On average, VKTX registered an earnings surprise of 2.17% in the last four quarters. In the last reported quarter, Viking beat earnings estimates by 3.7%.
Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) have a good chance of delivering an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
For the quarter to be reported, Viking has an Earnings ESP of -26.38% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Viking’s bottom line is pegged at a loss of 26 cents per share.
In the absence of an approved/marketed product in its portfolio, the focus is expected to be on updates related to Viking's pipeline consisting of three candidates — VK2735 (for obesity), VK2809 (for non-alcoholic steatohepatitis) and VK0214 (for X-linked adrenoleukodystrophy).
Viking Therapeutics, Inc. Price and Consensus
Viking Therapeutics, Inc. price-consensus-chart | Viking Therapeutics, Inc. Quote
AstraZeneca
AstraZeneca has a mixed earnings track recordover the trailing four quarters. The company’s earnings beat estimates in three of the last four quarters, missing the mark on one occasion. On average, AZN registered an earnings surprise of 6.79% in the last four quarters. In the last reported quarter, AstraZeneca beat earnings estimates by 8.42%.
For the quarter to be reported, AstraZeneca has an Earnings ESP of -0.42% and a Zacks Rank #3. The Zacks Consensus Estimate for AZN’s earnings is pegged at 96 cents per share.
Sales of AstraZeneca’s key medicines, mainly cancer drugs — Lynparza, Tagrisso and Imfinzi — and diabetes medicine Farxiga, are expected to have primarily driven the company’s top line in the second quarter, backed by strong demand trends.
AstraZeneca PLC Price and Consensus
AstraZeneca PLC price-consensus-chart | AstraZeneca PLC Quote
Sanofi
Sanofi has a mixed earnings record history so far. It beat earnings estimates in two of the last four quarters, matching once and missing the mark on the remaining occasion. In the past four quarters, SNY delivered an average earnings surprise of 1.02%. In the last reported quarter, SNY’s earnings matched estimates.
For the quarter to be reported, Sanofi has an Earnings ESP of +1.37% and a Zacks Rank #3, which suggests that the stock is poised for an earnings beat this time around. The Zacks Consensus Estimate for Sanofi’s earnings is pegged at 88 cents per share.
In the upcoming earnings release, SNY’s revenues are likely to have been driven by higher sales of Dupixent and contributions from new products like AstraZeneca-partnered Beyfortus, Nexviazyme and Altuviiio. However, the impact of generic competition on Aubagio sales in all key markets and the soft sales performance of the Vaccine segment are likely to have hurt revenues in the second quarter of 2024.
Sanofi Price and Consensus
Sanofi price-consensus-chart | Sanofi Quote
AbbVie
AbbVie has an impeccable earnings track record to date. ABBV’s earnings beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 2.69%. In the last reported quarter, AbbVie’s earnings beat estimates by 2.21%.
For the quarter to be reported, AbbVie has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate is pegged at $2.56 per share.
AbbVie’s top line is expected to have been driven by sales of new immunology drugs, Skyrizi and Rinvoq, which registered strong growth in the past few quarters, mainly due to approvals in new indications.During the quarter, the FDA expanded Skyrizi’s label in ulcerative colitis indication, which is likely to have boosted sales in the second quarter.
AbbVie Inc. Price and Consensus
AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote
Bristol Myers
Bristol Myers has a mixed earnings track record. BMY’s earnings beat estimates in three of the trailing four quarters, missing the mark on one occasion, delivering an average surprise of 4.18%. In the last reported quarter, Bristol Myers’ earnings surpassed estimates by 3.3%.
For the quarter to be reported, Bristol Myers has an Earnings ESP of -1.25% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s earnings is pegged at $1.64 per share.
Total revenues in the second quarter are likely to have seen an increase on the back of growth in Opdualag and Reblozyl.
Bristol Myers Squibb Company Price and Consensus
Bristol Myers Squibb Company price-consensus-chart | Bristol Myers Squibb Company Quote
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