Back to top

Image: Bigstock

5 Drug Stocks to Watch for Earnings on Aug 4: BMRN & More

Read MoreHide Full Article

With Q2 earnings season drawing to a close, we have seen about 317 S&P 500 members (representing 73.5% of the index’s total market capitalization) announce quarterly results as of Jul 29. Reported results show a 3.3% year-over-year decline in earnings while revenues declined 0.9%. Nevertheless, an impressive 72.9% of these companies managed to post an earnings beat, and 53.6% reported better-than-expected sales.
    
Within the Medical sector, several pharma and biotech companies are slated to report their earnings results this week. As per our Earnings Trends article, Medical is one of the six sectors expected to record positive earnings growth in this quarter.

Looking at the performance of the Medical sector, the Q2 scorecard shows that 63.5% stocks in the sector (total market capitalization of 71.9%) have reported results as of Jul 29, with a blended beat of 75.8% (the percentage of companies that have beaten both earnings and revenue estimates). The sector recorded a 5.4% improvement in earnings on revenue growth of 10.5%.

Let’s take a look at five companies in the Medical sector that are scheduled to report results on Aug 4.

San Rafael, CA-based BioMarin Pharmaceutical Inc. (BMRN - Free Report) is scheduled to report second-quarter 2016 results on Aug 4, after the market closes. BioMarin’s track record has been decent with the company beating estimates in three of the last four quarters. However, the company has recorded an average negative surprise of 7.48% over the trailing four quarters. Nevertheless, the combination of BioMarin’s Zacks Rank #3 (Hold) and +4.00% Earnings ESP makes us reasonably confident of an earnings beat this season. Investor focus will be on the company’s key drugs, Vimizim and Kuvan. Continued penetration of Vimizim in additional markets and growth of new patients on Kuvan should continue to boost the company’s top line. (Read More: BioMarin May Beat in Q2 Earnings: Stock to Gain?)

BIOMARIN PHARMA Price and EPS Surprise

BIOMARIN PHARMA Price and EPS Surprise | BIOMARIN PHARMA Quote

Large-cap biopharma company, Regeneron Pharmaceuticals, Inc. (REGN - Free Report) , will be reporting results before the opening bell. On its second-quarter call, investor focus is expected to be on the company’s key growth driver, Eylea, which should benefit from strong sales in the U.S. and abroad. Investor focus should also be on the performance of the company’s PCSK9 inhibitor, Praluent. Regeneron’s track record has been mixed with the company surpassing earnings estimates in two of the last four quarters and missing the same in the other two. The company has recorded an average negative earnings surprise of 0.06%. The combination of its Zacks Rank #3 and 0.00% ESP makes surprise prediction difficult for this quarter. (Read More: Regeneron Q2 Earnings: Can the Stock Surprise?)

REGENERON PHARM Price and EPS Surprise

REGENERON PHARM Price and EPS Surprise | REGENERON PHARM Quote

Teva Pharmaceutical Industries Limited (TEVA - Free Report) , known for its strong presence in the generics market, will be reporting second-quarter 2016, before the opening bell. Teva’s performance has been impressive with the company reporting positive earnings surprises thrice in the last four quarters and posting in-line earnings in one. The average positive earnings surprise for the four preceding quarters is 4.56%. Meanwhile, the combination of Teva’s Zacks Rank #2 (Buy) and +1.70% ESP makes us reasonably confident of an earnings beat this season. Teva’s generics segment could, however, continue seeing weakness in the second quarter. (Read More: Teva: Stock Likely to Beat on Earnings in Q2 Again?)

TEVA PHARM ADR Price and EPS Surprise

TEVA PHARM ADR Price and EPS Surprise | TEVA PHARM ADR Quote

San Diego, CA-based ACADIA Pharmaceuticals Inc. (ACAD - Free Report) will be reporting second-quarter 2016 results after the market closes. ACADIA has a disappointing track record with the company missing expectations in three of the last four quarters and managing to beat once, bringing the average negative surprise to 15.41%. ACADIA currently has a Zacks Rank #4 (Sell) and an ESP of 0.00%. As it is, we caution against Sell-rated stocks (#4 or #5) going into an earnings announcement. On the second-quarter call, investor focus will remain on the sales ramp-up of ACADIA’s newly launched product, Nuplazid. (Read More: ACADIA Q2 Earnings: What's in Store for the Stock?)

ACADIA PHARMA Price and EPS Surprise

ACADIA PHARMA Price and EPS Surprise | ACADIA PHARMA Quote

Biopharma stock, Alnylam Pharmaceuticals, Inc. (ALNY - Free Report) , is scheduled to report second-quarter results after the market closes. The Cambridge, MA-based company focuses on the development of novel therapeutics based on a biological pathway known as RNA (ribo nucleic acid) interference (RNAi). With no approved products in its portfolio, the company earns revenues primarily through collaborations. Alnylam has a disappointing track record so far. The company has missed estimates in three of the last four quarters and beat the same once, bringing the average negative surprise to 7.41%. Alnylam is a Zacks Rank #4 stock too with an ESP of 0.00%. Sell-rated stocks should never be considered going into an earnings announcement.

ALNYLAM PHARMA Price and EPS Surprise

ALNYLAM PHARMA Price and EPS Surprise | ALNYLAM PHARMA Quote

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>