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Drug Stock Q3 Earnings Roster for Oct 27: AMGN, BMY & More
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The Q3 earnings season has so far seen encouraging reports, with 116 S&P 500 companies having already released results as of Oct 21. Of the total, 80.2% surpassed earnings estimates while 62.9% trumped revenue expectations.
The Q3 earnings cycle is on track to be the first quarter to see positive earnings growth after five quarters of decline.
This week, a number of major pharma and biotech companies are slated to reveal quarterly numbers. The Q3 earnings season has so far been a mixed bag for the Medical sector. While Johnson & Johnson (JNJ - Free Report) , Novartis AG (NVS - Free Report) , Abbott Laboratories and Merck & Co., Inc. surpassed earnings expectations, Roche Holding AG’s quarterly sales fell marginally short of expectations. However, Eli Lilly and Company missed estimates on both the counts.
With this in the backdrop, let’s take a look at five companies in the Medical sector that will report earnings on Oct 27.
What Await these Drug Stocks?
Large-cap pharma stock, Bristol-Myers Squibb Company (BMY - Free Report) has an impressive track record with the company consistently beating earnings expectations. Will this pharma giant be able to keep its earnings streak alive? This Zacks Rank #3 (Hold) stock, which has an Earnings ESP of +3.08%, appears poised to beat expectations in the to-be-reported quarter as well.
Focus will be on the performance of key products including high-profile immuno-oncology drug, Opdivo. The HIV and HCV franchises are expected to remain under competitive pressure. With the company actively pursuing deals/acquisitions across different therapeutic areas, business development plans for the remainder of the year should also be something to keep an eye on. (Read more: Bristol-Myers Squibb Q3 Earnings: What's in Store?)
Our previous article showed that Bristol-Myers was unlikely to beat earnings this quarter. However, the Zacks Rank has changed since then and now, we are reasonably confident of an earnings beat this season.
Biotech major, Amgen Inc. (AMGN - Free Report) has an encouraging record as well, having surpassed earnings expectations in each of the last four quarters with an average positive surprise of 11.55%. The stock carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. A favorable Zacks Rank, when combined with its +1.08% ESP, makes us reasonably confident of an earnings beat this season.
Growth products like Enbrel, Xgeva, Vectibix, Sensipar, Prolia and Nplate should continue driving top-line growth. Focus will also be on the performance of the company’s PCSK9 inhibitor, Repatha. Meanwhile, cost-cutting efforts and share buyback should boost the bottom line. (Read more: Will Amgen Sustain its Earnings Beat Trend in Q3?)
Biotech company, Celgene Corporation’s key drug, Revlimid, will continue to act as the key growth driver, contributing significantly to the company’s top line. Apart from Revlimid, performance of other drugs – Pomalyst/Imnovid, Otezla and Abraxane – will also be in focus. Meanwhile, the company’s share buyback program is expected to boost the bottom line. Investors will also await updates on Celgene’s label expansion efforts and pipeline development.
Celgene’s track record has been pretty good with the company beating earnings estimates on three occasions and missing the same once. This Zacks Rank #3 stock currently has an ESP of -0.76% for Q3, thereby making it difficult to predict a positive surprise. (Read more: Celgene Q3 Earnings: What's in Store for the Stock?)
Developer of treatments targeting ultra-rare disorders, Alexion Pharmaceuticals, Inc. has a mixed track record. In the four trailing quarters, the company has missed expectations on two occasions while beating the same twice. This biotech stock’s Zacks Rank #3, when combined with an ESP of 0.00%, makes it difficult to predict an earnings surprise. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
The company had provided its Q3 earnings and revenue guidance at the time of releasing Q2 results. While focus will be on the sales ramp-up of newly launched products Strensiq and Kanuma, an update on the impact of macroeconomic issues on Soliris is also keenly awaited. Investors are also expected to await updates on the company’s pipeline. (Read more: Alexion Q3 Earnings: Can the Stock Pull a Surprise?)
Bothell, WA-based biotech company Seattle Genetics, Inc. is focused on the development and commercialization of treatments targeting cancer. Its sole marketed product, Adcetris remains the key growth engine for the company’s revenues. Label expansion efforts for Adcetris and pipeline progress will be the key areas of focus.
However, Seattle Genetics’ track record has been far from encouraging with the company missing estimates in three of the trailing four quarters, bringing the average negative surprise to 4.24%. This Zacks Rank #3 stock has an ESP of 0.00% for Q3, which makes it difficult to predict a surprise.
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Drug Stock Q3 Earnings Roster for Oct 27: AMGN, BMY & More
The Q3 earnings season has so far seen encouraging reports, with 116 S&P 500 companies having already released results as of Oct 21. Of the total, 80.2% surpassed earnings estimates while 62.9% trumped revenue expectations.
The Q3 earnings cycle is on track to be the first quarter to see positive earnings growth after five quarters of decline.
This week, a number of major pharma and biotech companies are slated to reveal quarterly numbers. The Q3 earnings season has so far been a mixed bag for the Medical sector. While Johnson & Johnson (JNJ - Free Report) , Novartis AG (NVS - Free Report) , Abbott Laboratories and Merck & Co., Inc. surpassed earnings expectations, Roche Holding AG’s quarterly sales fell marginally short of expectations. However, Eli Lilly and Company missed estimates on both the counts.
With this in the backdrop, let’s take a look at five companies in the Medical sector that will report earnings on Oct 27.
What Await these Drug Stocks?
Large-cap pharma stock, Bristol-Myers Squibb Company (BMY - Free Report) has an impressive track record with the company consistently beating earnings expectations. Will this pharma giant be able to keep its earnings streak alive? This Zacks Rank #3 (Hold) stock, which has an Earnings ESP of +3.08%, appears poised to beat expectations in the to-be-reported quarter as well.
BRISTOL-MYERS Price and EPS Surprise
BRISTOL-MYERS Price and EPS Surprise | BRISTOL-MYERS Quote
Focus will be on the performance of key products including high-profile immuno-oncology drug, Opdivo. The HIV and HCV franchises are expected to remain under competitive pressure. With the company actively pursuing deals/acquisitions across different therapeutic areas, business development plans for the remainder of the year should also be something to keep an eye on. (Read more: Bristol-Myers Squibb Q3 Earnings: What's in Store?)
Our previous article showed that Bristol-Myers was unlikely to beat earnings this quarter. However, the Zacks Rank has changed since then and now, we are reasonably confident of an earnings beat this season.
Biotech major, Amgen Inc. (AMGN - Free Report) has an encouraging record as well, having surpassed earnings expectations in each of the last four quarters with an average positive surprise of 11.55%. The stock carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. A favorable Zacks Rank, when combined with its +1.08% ESP, makes us reasonably confident of an earnings beat this season.
AMGEN INC Price and EPS Surprise
AMGEN INC Price and EPS Surprise | AMGEN INC Quote
Growth products like Enbrel, Xgeva, Vectibix, Sensipar, Prolia and Nplate should continue driving top-line growth. Focus will also be on the performance of the company’s PCSK9 inhibitor, Repatha. Meanwhile, cost-cutting efforts and share buyback should boost the bottom line. (Read more: Will Amgen Sustain its Earnings Beat Trend in Q3?)
Biotech company, Celgene Corporation’s key drug, Revlimid, will continue to act as the key growth driver, contributing significantly to the company’s top line. Apart from Revlimid, performance of other drugs – Pomalyst/Imnovid, Otezla and Abraxane – will also be in focus. Meanwhile, the company’s share buyback program is expected to boost the bottom line. Investors will also await updates on Celgene’s label expansion efforts and pipeline development.
CELGENE CORP Price and EPS Surprise
CELGENE CORP Price and EPS Surprise | CELGENE CORP Quote
Celgene’s track record has been pretty good with the company beating earnings estimates on three occasions and missing the same once. This Zacks Rank #3 stock currently has an ESP of -0.76% for Q3, thereby making it difficult to predict a positive surprise. (Read more: Celgene Q3 Earnings: What's in Store for the Stock?)
Developer of treatments targeting ultra-rare disorders, Alexion Pharmaceuticals, Inc. has a mixed track record. In the four trailing quarters, the company has missed expectations on two occasions while beating the same twice. This biotech stock’s Zacks Rank #3, when combined with an ESP of 0.00%, makes it difficult to predict an earnings surprise. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
ALEXION PHARMA Price and EPS Surprise
ALEXION PHARMA Price and EPS Surprise | ALEXION PHARMA Quote
The company had provided its Q3 earnings and revenue guidance at the time of releasing Q2 results. While focus will be on the sales ramp-up of newly launched products Strensiq and Kanuma, an update on the impact of macroeconomic issues on Soliris is also keenly awaited. Investors are also expected to await updates on the company’s pipeline. (Read more: Alexion Q3 Earnings: Can the Stock Pull a Surprise?)
Bothell, WA-based biotech company Seattle Genetics, Inc. is focused on the development and commercialization of treatments targeting cancer. Its sole marketed product, Adcetris remains the key growth engine for the company’s revenues. Label expansion efforts for Adcetris and pipeline progress will be the key areas of focus.
SEATTLE GENETIC Price and EPS Surprise
SEATTLE GENETIC Price and EPS Surprise | SEATTLE GENETIC Quote
However, Seattle Genetics’ track record has been far from encouraging with the company missing estimates in three of the trailing four quarters, bringing the average negative surprise to 4.24%. This Zacks Rank #3 stock has an ESP of 0.00% for Q3, which makes it difficult to predict a surprise.
Zacks' Best Investment Ideas for Long-Term Profit
Today you can gain access to long-term trades with double and triple-digit profit potential rarely available to the public. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more. Want a peek at this private information? Click here >>