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Drug Stocks Q1 Earnings Releases on Apr 26: AMGN, GSK & More
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The Q1 earnings season is in full swing and we believe this quarter is on track to see the highest growth in almost three years. According to the Earnings Preview report, 95 S&P 500 members, accounting for 24.9% of the index’s total market capitalization, have reported results as of Apr 21, 2017.
Total earnings for these 95 index members were up 14.3% from the year-ago quarter on a 4.6% improvement in revenues. The beat ratio was 72.6% for earnings and 62.1% for revenues.
The positive earnings growth momentum is expected to continue through the season. Per the report, total earnings for S&P 500 companies are expected to grow 9.1% year over year on 6% higher revenues. Note that estimates for the current period (second-quarter 2017) are also looking up.
However, with regard to the broader medical sector, which includes the pharma/biotech as well as medical device companies, the overall scenario does not look that positive. Total earnings for medical companies are expected to grow only 0.8% year over year on 6.3% higher revenues.
Among the pharma bigwigs, only Johnson & Johnson (JNJ - Free Report) has reported so far. J&J reported mixed first-quarter results, beating on earnings but missing on sales. This was the second consecutive sales miss for J&J due to a slowdown in pharmaceutical product sales. J&J’s lower-than-expected performance has left the investment community worrying about how the rest of the sector will perform.
Here we have four pharma companies that are set to report first-quarter results on Apr 26. Let's see how things are shaping up for this quarter.
Amgen, which is scheduled to release earnings after market hours, had delivered a positive earnings surprise of 4.33% in the last quarter. Amgen’s performance has been pretty impressive, with the company reporting positive surprises consistently. The average earnings beat over the last four quarters is 7.38%.
For this quarter, Amgen has an Earnings ESP of +2.33% and a Zacks Rank #3 (Hold), indicating a likely positive surprise. The Zacks Consensus Estimate is pegged at $3.00 per share.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Amgen’s growth products like Prolia, Xgeva, Vectibix, Nplate, Sensipar, should continue to perform well. However, volume growth of recently launched products may not be enough to offset the decline in mature brands. (Read More: Amgen to Report Q1 Earnings: Will it Beat Again?)
Glaxo is scheduled to announce results before the opening bell. Last quarter, the company delivered a positive earnings surprise of 14.04%. Glaxo’s performance has been pretty good so far, with earnings beating expectations thrice in the four trailing quarters. Overall, the company has delivered an average positive surprise of 11.03%.
The Zacks Consensus Estimate is pegged at 63 cents per share.
The Brentford, UK based pharma giant should continue to see strong performance at all of its business segments – Pharmaceuticals, Vaccines and Consumer Healthcare in the to-be reported quarter. However, pricing dynamics and competitive pressure are hurting sales of its top-selling drug Advair. (Read More: What's in Store for GlaxoSmithKline in Q1 Earnings?)
The company is also expected to report before market opens. In the last reported quarter, United Therapeutics recorded a negative earnings surprise of 27.07%. Overall, the company has posted an average positive earnings surprise of 15.39% in the four trailing quarters.
The company has an Earnings ESP of +4.24% and a Zacks Rank #3, indicating a likely positive surprise. The Zacks Consensus Estimate is pegged at $3.54 per share.
The Medicines Company
The Medicines Company is also expected to report before the opening bell. In the last reported quarter, Medicines Company recorded a positive earnings surprise of 9.79%. Overall, the company has posted an average positive earnings surprise of 13.13% in the four trailing quarters.
The company has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate is pegged at a loss of $1.13 per share.
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Drug Stocks Q1 Earnings Releases on Apr 26: AMGN, GSK & More
The Q1 earnings season is in full swing and we believe this quarter is on track to see the highest growth in almost three years. According to the Earnings Preview report, 95 S&P 500 members, accounting for 24.9% of the index’s total market capitalization, have reported results as of Apr 21, 2017.
Total earnings for these 95 index members were up 14.3% from the year-ago quarter on a 4.6% improvement in revenues. The beat ratio was 72.6% for earnings and 62.1% for revenues.
The positive earnings growth momentum is expected to continue through the season. Per the report, total earnings for S&P 500 companies are expected to grow 9.1% year over year on 6% higher revenues. Note that estimates for the current period (second-quarter 2017) are also looking up.
However, with regard to the broader medical sector, which includes the pharma/biotech as well as medical device companies, the overall scenario does not look that positive. Total earnings for medical companies are expected to grow only 0.8% year over year on 6.3% higher revenues.
Among the pharma bigwigs, only Johnson & Johnson (JNJ - Free Report) has reported so far. J&J reported mixed first-quarter results, beating on earnings but missing on sales. This was the second consecutive sales miss for J&J due to a slowdown in pharmaceutical product sales. J&J’s lower-than-expected performance has left the investment community worrying about how the rest of the sector will perform.
Here we have four pharma companies that are set to report first-quarter results on Apr 26. Let's see how things are shaping up for this quarter.
Amgen, Inc. (AMGN - Free Report)
Amgen, which is scheduled to release earnings after market hours, had delivered a positive earnings surprise of 4.33% in the last quarter. Amgen’s performance has been pretty impressive, with the company reporting positive surprises consistently. The average earnings beat over the last four quarters is 7.38%.
For this quarter, Amgen has an Earnings ESP of +2.33% and a Zacks Rank #3 (Hold), indicating a likely positive surprise. The Zacks Consensus Estimate is pegged at $3.00 per share.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Amgen’s growth products like Prolia, Xgeva, Vectibix, Nplate, Sensipar, should continue to perform well. However, volume growth of recently launched products may not be enough to offset the decline in mature brands. (Read More: Amgen to Report Q1 Earnings: Will it Beat Again?)
GlaxoSmithKline (GSK - Free Report)
Glaxo is scheduled to announce results before the opening bell. Last quarter, the company delivered a positive earnings surprise of 14.04%. Glaxo’s performance has been pretty good so far, with earnings beating expectations thrice in the four trailing quarters. Overall, the company has delivered an average positive surprise of 11.03%.
The company has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate is pegged at 63 cents per share.
The Brentford, UK based pharma giant should continue to see strong performance at all of its business segments – Pharmaceuticals, Vaccines and Consumer Healthcare in the to-be reported quarter. However, pricing dynamics and competitive pressure are hurting sales of its top-selling drug Advair. (Read More: What's in Store for GlaxoSmithKline in Q1 Earnings?)
United Therapeutics Corporation (UTHR - Free Report)
The company is also expected to report before market opens. In the last reported quarter, United Therapeutics recorded a negative earnings surprise of 27.07%. Overall, the company has posted an average positive earnings surprise of 15.39% in the four trailing quarters.
The company has an Earnings ESP of +4.24% and a Zacks Rank #3, indicating a likely positive surprise. The Zacks Consensus Estimate is pegged at $3.54 per share.
The Medicines Company
The Medicines Company is also expected to report before the opening bell. In the last reported quarter, Medicines Company recorded a positive earnings surprise of 9.79%. Overall, the company has posted an average positive earnings surprise of 13.13% in the four trailing quarters.
The company has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate is pegged at a loss of $1.13 per share.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>