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Regeneron (REGN) Q1 Earnings Misses Estimates

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Tarrytown, NY-based Regeneron Pharmaceuticals, Inc. (REGN - Free Report) is a biopharmaceutical company focused on the discovery, development and commercialization of products for the treatment of serious medical conditions including eye diseases, high LDL cholesterol. Currently, the company has three marketed products in its portfolio – Eylea, Arcalyst and Praluent.

Eye drug, Eylea, should continue to remain the key growth driver contributing significantly to the top line. Meanwhile, Regeneron received a major boost when its PCSK9 inhibitor, Praluent, which the company has co-developed with Sanofi, gained approval in the U.S. The cholesterol management market represents huge commercial potential. The FDA recently approved its Dupixent (dupilumab) Injection for the treatment of adults with moderate-to-severe atopic dermatitis (AD).

In this scenario, investor focus should remain on the performance of Eylea and Praluent apart from the usual top-and bottom-line numbers.

Regeneron’s performance has been mixed so far. In the last four reported quarters, it has surpassed earnings estimates on three occasions and missed the same once. Overall, the company has recorded an average positive earnings surprise of 8.1%.

Currently, Regeneron has a Zacks Rank #2 (Buy), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Regeneron’s first-quarter 2017 earnings missed expectations. Our consensus called for EPS of $2.50 and the company reported EPS of $2.16 (including the impact of share-based compensation expenses and tax adjustments).

Revenues: Revenues in the reported marginally surpassed expectations. Regeneron posted revenues of $1.29 billion, compared to our consensus estimate of $1.32 billion.

Key Stats: Eylea net sales increased 9% year over year to $854 million in the U.S. Regeneron expects U.S. Eylea net sales to grow in single digits in 2017.

Pre-Market Trading: Shares were down around 1% in the pre-market trading.

Check back later for our full write up on this REGN earnings report later!
 


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