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Regeneron (REGN) to Report Q2 Earnings: What's in the Cards?
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Biotech giant Regeneron Pharmaceuticals, Inc. (REGN - Free Report) is slated to report second-quarter results on Aug 1, 2024.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $3.38 billion, while the same for earnings is pinned at $10.49 per share.
Factors at Play
Regeneron is currently facing challenges for its lead drug, Eylea, which is its primary growth engine. These challenges are likely to have negatively impacted the upcoming results.
A significant chunk of Regeneron’s revenues comes from the sale of its lead drug, Eylea, which is approved for various ophthalmology indications (neovascular age-related macular degeneration, diabetic macular edema [“DME”] and macular edema, among others). Eylea was developed in collaboration with Bayer.
While Regeneron records net product sales of Eylea in the United States, Bayer does the same outside the country. The company also records its share of profits/losses in connection with Eylea sales outside the country.
Eylea’s sales have been under pressure in the last few quarters due to competition from Vabysmo.
The Zacks Consensus Estimate of Eylea sales in the United States is currently pegged at $1.5 billion. Given the fact that Eylea is the prime growth engine for Regeneron, a decline in Eylea sales does not bode well for the company.
Apart from Eylea, profits from asthma drug Dupixent’s sales act as a primary growth driver for REGN. Hence, investors should also focus on Dupixent’s performance, sales of which are recorded by Sanofi (SNY - Free Report) . Regeneron has a collaboration agreement with Sanofi for drugs like Dupixent and Kevzara. While Sanofi records sales, Regeneron records its share of profits/losses in connection with the global sales of the aforementioned drugs.
Regeneron has likely earned incremental profits from Dupixent in the to-be-reported quarter. Dupixent maintains its stellar performance, driven by continued strong demand in the approved indications, including atopic dermatitis, asthma, chronic rhinosinusitis with nasal polyposis, eosinophilic esophagitis and prurigo nodularis. The label expansion of the drug in the past few months must have boosted sales further. The Zacks Consensus Estimate for Dupixent's sales is currently pegged at $3.4 billion.
Meanwhile, Regeneron is also looking to diversify its revenue base to reduce its dependence on Eylea for top-line growth and build an oncology franchise, which currently comprises Libtayo.
Growth in Libtayo’s sales has also boosted the top line in recent quarters. Libtayo sales are being driven by growth in demand for non-melanoma skin indications, coupled with increased utilization in both monotherapy and chemotherapy combination settings in lung cancer. The Zacks Consensus Estimate for Libtayo’s sales is currently pegged at $285 million.
REGN is currently working to expand Libatyo’s label, in combination with other compounds, in additional indications.
This apart, to counter the decline in Eylea sales, Regeneron developed a higher dose of the drug. In August 2023, the FDA finally approved aflibercept 8 mg for the treatment of patients with wet age-related macular degeneration, DME and diabetic retinopathy under the brand name Eylea HD. The approval came after a few setbacks.
The initial uptake of Eylea HD is encouraging as Eylea patients transition to the higher dose.
What Our Model Predicts
Our proven model does not conclusively predict an earnings beat for Regeneron 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: Earnings ESP for REGN is +0.42%, as the Zacks Consensus Estimate is currently pinned at $10.49 per share and the Most Accurate Estimate is pegged at $10.53 per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Earnings Surprise History
The company’s earnings beat estimates in three of the trailing four quarters and missed in the other one, delivering an average surprise of 4.47%. In the last reported quarter, REGN’s earnings fell short of estimates by 6.37%.
Regeneron Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Regeneron’s shares have risen 20.2% year to date against the industry’s decline of 2%.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some drug/biotech stocks that you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this reporting cycle.
SNDX’s earnings outpaced estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 7.88%. Shares of SNDX have risen 17.3% in the past six months.
Amgen (AMGN - Free Report) has an Earnings ESP of +1.03% and a Zacks Rank #3.
Amgen beat on earnings in each of the trailing four quarters, delivering an average surprise of 6.42%. Its shares have surged 7.4% in the past six months.
Image: Bigstock
Regeneron (REGN) to Report Q2 Earnings: What's in the Cards?
Biotech giant Regeneron Pharmaceuticals, Inc. (REGN - Free Report) is slated to report second-quarter results on Aug 1, 2024.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $3.38 billion, while the same for earnings is pinned at $10.49 per share.
Factors at Play
Regeneron is currently facing challenges for its lead drug, Eylea, which is its primary growth engine. These challenges are likely to have negatively impacted the upcoming results.
A significant chunk of Regeneron’s revenues comes from the sale of its lead drug, Eylea, which is approved for various ophthalmology indications (neovascular age-related macular degeneration, diabetic macular edema [“DME”] and macular edema, among others). Eylea was developed in collaboration with Bayer.
While Regeneron records net product sales of Eylea in the United States, Bayer does the same outside the country. The company also records its share of profits/losses in connection with Eylea sales outside the country.
Eylea’s sales have been under pressure in the last few quarters due to competition from Vabysmo.
The Zacks Consensus Estimate of Eylea sales in the United States is currently pegged at $1.5 billion. Given the fact that Eylea is the prime growth engine for Regeneron, a decline in Eylea sales does not bode well for the company.
Apart from Eylea, profits from asthma drug Dupixent’s sales act as a primary growth driver for REGN. Hence, investors should also focus on Dupixent’s performance, sales of which are recorded by Sanofi (SNY - Free Report) . Regeneron has a collaboration agreement with Sanofi for drugs like Dupixent and Kevzara. While Sanofi records sales, Regeneron records its share of profits/losses in connection with the global sales of the aforementioned drugs.
Regeneron has likely earned incremental profits from Dupixent in the to-be-reported quarter. Dupixent maintains its stellar performance, driven by continued strong demand in the approved indications, including atopic dermatitis, asthma, chronic rhinosinusitis with nasal polyposis, eosinophilic esophagitis and prurigo nodularis. The label expansion of the drug in the past few months must have boosted sales further. The Zacks Consensus Estimate for Dupixent's sales is currently pegged at $3.4 billion.
Meanwhile, Regeneron is also looking to diversify its revenue base to reduce its dependence on Eylea for top-line growth and build an oncology franchise, which currently comprises Libtayo.
Growth in Libtayo’s sales has also boosted the top line in recent quarters. Libtayo sales are being driven by growth in demand for non-melanoma skin indications, coupled with increased utilization in both monotherapy and chemotherapy combination settings in lung cancer. The Zacks Consensus Estimate for Libtayo’s sales is currently pegged at $285 million.
REGN is currently working to expand Libatyo’s label, in combination with other compounds, in additional indications.
This apart, to counter the decline in Eylea sales, Regeneron developed a higher dose of the drug. In August 2023, the FDA finally approved aflibercept 8 mg for the treatment of patients with wet age-related macular degeneration, DME and diabetic retinopathy under the brand name Eylea HD. The approval came after a few setbacks.
The initial uptake of Eylea HD is encouraging as Eylea patients transition to the higher dose.
What Our Model Predicts
Our proven model does not conclusively predict an earnings beat for Regeneron 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: Earnings ESP for REGN is +0.42%, as the Zacks Consensus Estimate is currently pinned at $10.49 per share and the Most Accurate Estimate is pegged at $10.53 per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Earnings Surprise History
The company’s earnings beat estimates in three of the trailing four quarters and missed in the other one, delivering an average surprise of 4.47%. In the last reported quarter, REGN’s earnings fell short of estimates by 6.37%.
Regeneron Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Regeneron Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Regeneron Pharmaceuticals, Inc. Quote
Share Price Performance
Regeneron’s shares have risen 20.2% year to date against the industry’s decline of 2%.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some drug/biotech stocks that you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this reporting cycle.
Syndax Pharmaceuticals (SNDX - Free Report) has an Earnings ESP of +4.40% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
SNDX’s earnings outpaced estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 7.88%. Shares of SNDX have risen 17.3% in the past six months.
Amgen (AMGN - Free Report) has an Earnings ESP of +1.03% and a Zacks Rank #3.
Amgen beat on earnings in each of the trailing four quarters, delivering an average surprise of 6.42%. Its shares have surged 7.4% in the past six months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.