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In the last reported quarter, the company’s adjusted earnings per share (EPS) of $1.22 surpassed the Zacks Consensus Estimate by 25.8%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on three occasions and missed once, delivering an earnings surprise of 13.6%, on average.
Let’s check out the factors that have shaped OGN’s performance prior to this announcement.
Factors to Note
Women’s Health
In first-quarter 2024, Organon's Women’s Health segment recorded a solid uptick in its revenues, primarily driven by the strength of Nexplanon (etonogestrel implant). This, in turn, was driven by the favorable year-over-year comparison of customer purchasing patterns associated with the timing of U.S. list-price adjustments, along with favorable price and discount rates in the United States and the favorable timing of tenders to markets outside of the United States. The results were also boosted by the robust uptake of other products, like the Jada system. We expect these products to have continued to witness customer adoption due to their nature, thereby contributing to segmental revenues.
However, we expect the segment to have continued to be impacted by lower sales of NuvaRing (estonogestrel /ethinyl estradiol vaginal ring) due to ongoing generic competition.
The Zacks Consensus Estimate for the Women’s Health segment’s revenues is currently pegged at $441.3 million, up 0.8% year over year.
During the first quarter, the segment was driven by strength in Ontruzant (trastuzumab-dttb), which benefited from incremental demand from a tender in Brazil, Renflexis (infliximab-abda), which grew primarily on the back of continued demand growth in the United States and Canada, and Hadlima (adalimumab-bwwd), primarily resulting from continued uptake following the product's July 2023 launch in the United States. We expect the robust adoption of these products to have continued in the second quarter on the back of sustained demand, thereby significantly pushing up segmental revenues.
In April, Organon announced that the Mark Cuban Cost Plus Drug Company, PBC (Cost Plus Drugs), had added HADLIMA, an FDA-approved biosimilar to HUMIRA (adalimumab), to its online pharmacy. This is also likely to have aided segmental revenues in the to-be-reported quarter.
The Zacks Consensus Estimate for the segment’s revenues is currently pegged at $176.4 million, up 30.7% year over year.
Other Factors to Note
Organon’s Established Brands segment is likely to have been aided by the contribution from the recent commercial agreement for the two migraine drugs, Emgality and Rayvow. In the first quarter, the company saw a recovery in its injectable steroid products. We expect these trends to have continued in the second quarter as well, thereby boosting revenues.
However, the current unstable macroeconomic business environment and continued inflationary impacts on material and distribution costs are likely to have weighed on the company’s second-quarter revenues, raising our apprehension.
The Estimate Picture
For second-quarter 2024, the Zacks Consensus Estimate for revenues is pegged at $1.63 billion, implying an improvement of 1.1% from the prior-year quarter’s reported figure.
The consensus estimate for EPS is pegged at $1.06, indicating a decrease of 19.1% from the prior-year period’s reported number.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has higher chances of beating estimates. This is not the case here, as you can see below.
Earnings ESP: BD has an Earnings ESP of -1.47%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few other medical stocks worth considering, as these also have the right combination of elements to beat on earnings this reporting cycle.
Image: Bigstock
Product Demand Likely to Aid Organon's (OGN) Q2 Earnings
Organon & Co. (OGN - Free Report) is scheduled to report second-quarter 2024 results on Aug 6, before market open.
In the last reported quarter, the company’s adjusted earnings per share (EPS) of $1.22 surpassed the Zacks Consensus Estimate by 25.8%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on three occasions and missed once, delivering an earnings surprise of 13.6%, on average.
Let’s check out the factors that have shaped OGN’s performance prior to this announcement.
Factors to Note
Women’s Health
In first-quarter 2024, Organon's Women’s Health segment recorded a solid uptick in its revenues, primarily driven by the strength of Nexplanon (etonogestrel implant). This, in turn, was driven by the favorable year-over-year comparison of customer purchasing patterns associated with the timing of U.S. list-price adjustments, along with favorable price and discount rates in the United States and the favorable timing of tenders to markets outside of the United States. The results were also boosted by the robust uptake of other products, like the Jada system. We expect these products to have continued to witness customer adoption due to their nature, thereby contributing to segmental revenues.
However, we expect the segment to have continued to be impacted by lower sales of NuvaRing (estonogestrel /ethinyl estradiol vaginal ring) due to ongoing generic competition.
The Zacks Consensus Estimate for the Women’s Health segment’s revenues is currently pegged at $441.3 million, up 0.8% year over year.
Organon & Co. Price and EPS Surprise
Organon & Co. price-eps-surprise | Organon & Co. Quote
Biosimilars
During the first quarter, the segment was driven by strength in Ontruzant (trastuzumab-dttb), which benefited from incremental demand from a tender in Brazil, Renflexis (infliximab-abda), which grew primarily on the back of continued demand growth in the United States and Canada, and Hadlima (adalimumab-bwwd), primarily resulting from continued uptake following the product's July 2023 launch in the United States. We expect the robust adoption of these products to have continued in the second quarter on the back of sustained demand, thereby significantly pushing up segmental revenues.
In April, Organon announced that the Mark Cuban Cost Plus Drug Company, PBC (Cost Plus Drugs), had added HADLIMA, an FDA-approved biosimilar to HUMIRA (adalimumab), to its online pharmacy. This is also likely to have aided segmental revenues in the to-be-reported quarter.
The Zacks Consensus Estimate for the segment’s revenues is currently pegged at $176.4 million, up 30.7% year over year.
Other Factors to Note
Organon’s Established Brands segment is likely to have been aided by the contribution from the recent commercial agreement for the two migraine drugs, Emgality and Rayvow. In the first quarter, the company saw a recovery in its injectable steroid products. We expect these trends to have continued in the second quarter as well, thereby boosting revenues.
However, the current unstable macroeconomic business environment and continued inflationary impacts on material and distribution costs are likely to have weighed on the company’s second-quarter revenues, raising our apprehension.
The Estimate Picture
For second-quarter 2024, the Zacks Consensus Estimate for revenues is pegged at $1.63 billion, implying an improvement of 1.1% from the prior-year quarter’s reported figure.
The consensus estimate for EPS is pegged at $1.06, indicating a decrease of 19.1% from the prior-year period’s reported number.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has higher chances of beating estimates. This is not the case here, as you can see below.
Earnings ESP: BD has an Earnings ESP of -1.47%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few other medical stocks worth considering, as these also have the right combination of elements to beat on earnings this reporting cycle.
Esperion Therapeutics, Inc. (ESPR - Free Report) has an Earnings ESP of +46.67% and a Zacks Rank of 1. ESPR has an estimated long-term growth rate of 26.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Esperion’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 142.4%.
MediWound Ltd. (MDWD - Free Report) has an Earnings ESP of +4.76% and is a Zacks Rank #2 stock. MDWD has an estimated growth rate of 23.4% for 2025.
MediWound’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 47.7%.
Illumina, Inc. (ILMN - Free Report) has an Earnings ESP of +132.61% and a Zacks Rank of 1. ILMN has an estimated growth rate of 74.4% for 2024.
Illumina’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 788.5%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.