We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Drug, Biotech Stocks' Q2 Earnings Due on Aug 1: PFE, MRK & More
Read MoreHide Full Article
The second-quarter 2023 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 Medical sector kicked off around mid-July when bellwether Johnson & Johnson reported better-than-expected second-quarter results. It beat estimates for earnings as well as sales. All three segments, Pharmaceutical, MedTech and Consumer Health, delivered a strong performance in the quarter, gaining from solid demand trends. Among the biotechs, Biogen and GSK plc reported their second-quarter results last week, where both companies beat earnings and revenues estimates. Biogen maintained its previously issued financial outlook for 2023, while GSK raised the same.
The Earnings Trends report indicates that as of Jul 26, 17.2% of the companies in the Medical sector — representing 35.2% of the sector’s market capitalization — reported quarterly earnings. Of these, 90% have outperformed on both earnings and revenues. Earnings increased 3.1% year over year, while revenues increased 12.8%. Overall, second-quarter earnings of the Medical sector are expected to decline 31.2%, while sales are expected to rise 3.3% from the year-ago quarter.
Pfizer (PFE - Free Report) , Merck (MRK - Free Report) , Vertex Pharmaceuticals (VRTX - Free Report) , Exelixis (EXEL - Free Report) and Incyte (INCY - Free Report) are scheduled to release second-quarter earnings on Aug 1. While, PFE, MRK and INCY are set to report before the opening bell, VRTX and EXEL will report after market close.
Let’s see how these biotech/pharma companies might have performed in the soon-to-be-reported quarter.
Pfizer
Pfizer has an impeccable earnings track record. PFE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 17.84%. In the last reported quarter, Pfizer’s earnings beat estimates by 23%.
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, Pfizer has an Earnings ESP of -2.11% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s adjusted EPS is pegged at 57 cents per share. You can see the complete list of today’s Zacks #1 Rank stocks here.
Merck has an encouraging earnings track record. It beat earnings estimates in each of the last four quarters, delivering an average earnings surprise of 7.77%. In the last reported quarter, MRK beat earnings estimates by 4.48%.
For the quarter to be reported, Merck has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s earnings is pegged at $2.17 per share.
Strong global underlying demand across its business, particularly for cancer drug Keytruda and HPV vaccine, Gardasil, is likely to have boosted sales growth in the second quarter as in the previous quarters.
Merck & Co., Inc. Price, Consensus and EPS Surprise
Vertex beat earnings estimates in each of the last four quarters, delivering an average earnings surprise of 5.51%. In the last reported quarter, Vertex beat earnings estimates by 3.39%.
For the quarter to be reported, Vertex has an Earnings ESP of -2.12% and a Zacks Rank #2. The Zacks Consensus Estimate for the company’s earnings is pegged at $3.85 per share.
Vertex’s revenue growth in second-quarter 2023 is likely to have been driven by the strong growth trend of its blockbuster cystic fibrosis medicine, Trikafta. In Europe, the drug is marketed under the brand name Kaftrio.
Vertex Pharmaceuticals Incorporated Price, Consensus and EPS Surprise
Exelixis beat earnings estimates in three of the last four quarters, missing the mark on one occasion, delivering an average earnings surprise of 10.89%. In the last reported quarter, EXEL reported a negative earnings surprise of 30.43%.
For the quarter to be reported, Exelixis has an Earnings ESP of -21.94% and a Zacks Rank #2. The Zacks Consensus Estimate for the company’s earnings is pegged at 22 cents per share.
Exelixis’ second-quarter revenues are likely to have been fueled by higher sales of its key drug, Cabometyx (cabozantinib), most likely due to higher sales volume and price.
Incyte beat earnings estimates in two of the last four quarters but missed the mark on the other two occasions, delivering an average negative earnings surprise of 10.05%. In the last reported quarter, INCY delivered a negative earnings surprise of 56.47%.
For the quarter to be reported, Incyte has an Earnings ESP of -2.20% and a Zacks Rank #3. The Zacks Consensus Estimate for earnings is pegged at 87 cents.
An 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), is likely to have boosted revenues in the second quarter. 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 Novartis in the second quarter on higher Jakavi sales.
Incyte Corporation Price, Consensus and EPS Surprise
Image: Bigstock
Drug, Biotech Stocks' Q2 Earnings Due on Aug 1: PFE, MRK & More
The second-quarter 2023 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 Medical sector kicked off around mid-July when bellwether Johnson & Johnson reported better-than-expected second-quarter results. It beat estimates for earnings as well as sales. All three segments, Pharmaceutical, MedTech and Consumer Health, delivered a strong performance in the quarter, gaining from solid demand trends. Among the biotechs, Biogen and GSK plc reported their second-quarter results last week, where both companies beat earnings and revenues estimates. Biogen maintained its previously issued financial outlook for 2023, while GSK raised the same.
The Earnings Trends report indicates that as of Jul 26, 17.2% of the companies in the Medical sector — representing 35.2% of the sector’s market capitalization — reported quarterly earnings. Of these, 90% have outperformed on both earnings and revenues. Earnings increased 3.1% year over year, while revenues increased 12.8%. Overall, second-quarter earnings of the Medical sector are expected to decline 31.2%, while sales are expected to rise 3.3% from the year-ago quarter.
Pfizer (PFE - Free Report) , Merck (MRK - Free Report) , Vertex Pharmaceuticals (VRTX - Free Report) , Exelixis (EXEL - Free Report) and Incyte (INCY - Free Report) are scheduled to release second-quarter earnings on Aug 1. While, PFE, MRK and INCY are set to report before the opening bell, VRTX and EXEL will report after market close.
Let’s see how these biotech/pharma companies might have performed in the soon-to-be-reported quarter.
Pfizer
Pfizer has an impeccable earnings track record. PFE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 17.84%. In the last reported quarter, Pfizer’s earnings beat estimates by 23%.
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, Pfizer has an Earnings ESP of -2.11% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s adjusted EPS is pegged at 57 cents per share. You can see the complete list of today’s Zacks #1 Rank stocks here.
Pfizer’s revenues are expected to have declined in the second quarter of 2023 due to steep expected declines in revenues of its COVID-19 products on lower demand.
Pfizer Inc. Price, Consensus and EPS Surprise
Pfizer Inc. price-consensus-eps-surprise-chart | Pfizer Inc. Quote
Merck
Merck has an encouraging earnings track record. It beat earnings estimates in each of the last four quarters, delivering an average earnings surprise of 7.77%. In the last reported quarter, MRK beat earnings estimates by 4.48%.
For the quarter to be reported, Merck has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s earnings is pegged at $2.17 per share.
Strong global underlying demand across its business, particularly for cancer drug Keytruda and HPV vaccine, Gardasil, is likely to have boosted sales growth in the second quarter as in the previous quarters.
Merck & Co., Inc. Price, Consensus and EPS Surprise
Merck & Co., Inc. price-consensus-eps-surprise-chart | Merck & Co., Inc. Quote
Vertex Pharmaceuticals
Vertex beat earnings estimates in each of the last four quarters, delivering an average earnings surprise of 5.51%. In the last reported quarter, Vertex beat earnings estimates by 3.39%.
For the quarter to be reported, Vertex has an Earnings ESP of -2.12% and a Zacks Rank #2. The Zacks Consensus Estimate for the company’s earnings is pegged at $3.85 per share.
Vertex’s revenue growth in second-quarter 2023 is likely to have been driven by the strong growth trend of its blockbuster cystic fibrosis medicine, Trikafta. In Europe, the drug is marketed under the brand name Kaftrio.
Vertex Pharmaceuticals Incorporated Price, Consensus and EPS Surprise
Vertex Pharmaceuticals Incorporated price-consensus-eps-surprise-chart | Vertex Pharmaceuticals Incorporated Quote
Exelixis
Exelixis beat earnings estimates in three of the last four quarters, missing the mark on one occasion, delivering an average earnings surprise of 10.89%. In the last reported quarter, EXEL reported a negative earnings surprise of 30.43%.
For the quarter to be reported, Exelixis has an Earnings ESP of -21.94% and a Zacks Rank #2. The Zacks Consensus Estimate for the company’s earnings is pegged at 22 cents per share.
Exelixis’ second-quarter revenues are likely to have been fueled by higher sales of its key drug, Cabometyx (cabozantinib), most likely due to higher sales volume and price.
Exelixis, Inc. Price, Consensus and EPS Surprise
Exelixis, Inc. price-consensus-eps-surprise-chart | Exelixis, Inc. Quote
Incyte
Incyte beat earnings estimates in two of the last four quarters but missed the mark on the other two occasions, delivering an average negative earnings surprise of 10.05%. In the last reported quarter, INCY delivered a negative earnings surprise of 56.47%.
For the quarter to be reported, Incyte has an Earnings ESP of -2.20% and a Zacks Rank #3. The Zacks Consensus Estimate for earnings is pegged at 87 cents.
An 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), is likely to have boosted revenues in the second quarter. 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 Novartis in the second quarter on higher Jakavi sales.
Incyte Corporation Price, Consensus and EPS Surprise
Incyte Corporation price-consensus-eps-surprise-chart | Incyte Corporation Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.