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Drug Stock Q1 Earnings Due on Apr 26: ABBV, ALXN, BMY & VRTX
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The Q1 earnings season has started to gather steam. Per the latest Earnings Preview, 87 S&P 500 members — accounting for 17.4% of the index — have already released financial figures as of Apr 20, 2018.
Total earnings for the 87 S&P 500 members that have reported results already are up 25% from the same period last year on 10.7% higher revenues, with 82.8% beating EPS estimates and 67.8% beating revenue estimates. The proportion of companies beating both EPS and revenue estimates is 62.1%.
The ongoing earnings phase seems to have also begun encouragingly for the Drug/Biotech sector. Among the major large cap players, Johnson & Johnson (JNJ - Free Report) kicked off the season on a strong note, beating the Zacks Consensus Estimate for both earnings as well as sales. Another large cap player that reported earnings last week was Novartis (NVS - Free Report) , which also surpassed both earnings and revenue expectations this quarter. Also Biogen Inc. (BIIB - Free Report) which released its results this week surpassed earnings but missed sales expectations.
Higher demand is expected to boost new product sales. Also, innovation and successful product line expansion along with positive clinical study results, FDA approvals, and consistent performance of key products, growing demand for drugs, especially for rare-to-treat diseases, an ageing population as well as an increased healthcare expenditure are some of the factors that should keep the sector on a growth trajectory.
Also, according to the Earnings Preview, the broader Medical sector (inclusive of drug, biotech as well as Medical Device companies) is likely to record 6.8% year-over-year growth in revenues and a 9.4% rise in earnings in the quarter under review.
Four pharma/biotech giants are scheduled to report Q1 earnings results on Apr 26. Let's see, how things are shaping up for the companies in the upcoming releases.
AbbVie Inc. (ABBV - Free Report) is slated to releaseresults before the market opens. The company delivered a positive earnings surprise of 2.78% in the last reported quarter. Moreover, the company’s performance has been impressive in the recent past with its earnings surpassing expectations in the trailing four quarters with an average positive earnings surprise of 1.81%.
Our proven model shows that AbbVie is likely to beat on earnings in the to-be-reported quarter because it has the right combination of two key ingredients — a positive Earnings ESP of 0.06% and a Zacks Rank # 3 (Hold). The Zacks Consensus Estimate for the company’s earnings for the quarter under review is pegged at $1.80 per share.
The company’s key drug, Humira, is likely to remain a key growth driver in the first quarter, backed by strong demand trends for the drug. AbbVie expects Humira sales to reflect a rise in the low-teens band in the imminent earnings release while internationally, the growth rate is projected in a mid-single-digit range, operationally. Other drugs, namely Duopa and Creon are also likely to maintain an encouraging performance in the soon-to-be-reported quarter. (Read More:Is a Beat in the Cards for AbbVie in Q1 Earnings?)
Alexion PharmaceuticalsInc. is slated to report results before the opening bell. The company delivered a positive earnings surprise of 15.63% in the last reported quarter. The company’s track record is excellent as it has consistently topped estimates in the last four quarters, with an average positive earnings surprise of 15.21%.
Alexion is likely to beat on earnings in the to-be-reported quarter because it has a positive Earnings ESP of 0.23% and a Zacks Rank # 2 (Buy). The Zacks Consensus Estimate for the quarterly earnings is pegged at $1.48 per share. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alexion’s blockbuster drug, Soliris, continues to perform well.The company is working on expanding Soliris’ label into additional indications. Alexion recently announced that it will acquire Sweden-based Wilson Therapeutics for $855 million. The transaction is expected to close in the second quarter. The acquisition will add a late-stage candidate, WTX101 to Alexion’s pipeline. The candidate is currently in phase III for the treatment of Wilson disease, a rare genetic disorder.
Alexion is looking to diversify its portfolio and reduce its dependence on its blockbuster drug Soliris. The deal will strengthen Alexion’s rare disease pipeline with a late-stage candidate. (Read More:Is a Beat in Store for Alexion This Earnings Season?)
Alexion Pharmaceuticals, Inc. Price and EPS Surprise
Bristol-Myers Squibb (BMY - Free Report) is slated to report results before the opening bell.The company delivered a positive earnings surprise of 1.49% last quarter. The company’s delivered a positive earnings surprise in three of the trailing four quarters with an average beat of 4.23%.
Our model shows that Bristol-Myers is likely to beat estimates this quarter. The combination of Bristol-Myers’ Zacks Rank of 3 and a positive Earnings ESP of 0.82% makes us confident about an earnings beat in the upcoming report. The consensus mark for the quarter to be reported is pegged at 84 cents per share.
Bristol-Myers’ blockbuster immuno-oncology drug, Opdivo is expected to remain the main sales driver in the first quarter, following several line extensions in 2017. In the soon-to-be reported quarter, the company announced encouraging results from a phase III study evaluating Opdivo in first-line non-small cell lung cancer. Label expansion of leukemia drug, Sprycel, approved in November 2017, should bring in more sales for the drug. Moreover, continued strong performance of Yervoy and Orencia will have a favorable impact. (Read More: Is a Beat in Store for Bristol-Myers in Q1 Earnings?)
Bristol-Myers Squibb Company Price and EPS Surprise
Vertex Pharmaceuticals Incorporated (VRTX - Free Report) is slated to report results after the market closes. Vertex’s track record has been impressive so far. The company delivered positive earnings surprises in each of the last four quarters. The average positive earnings surprise for the last four quarters is 25.31%. In the last reported quarter, Vertex delivered a positive earnings surprise of 5.17%.
Our model shows that Vertex is likely to beat estimates this quarter. The combination of Bristol-Myers’ Zacks Rank of 3 and a positive Earnings ESP of 8.28% makes us confident about an earnings beat in the upcoming report. The consensus mark for the quarter to be reported is pegged at 57 cents per share.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Vertex’s cystic fibrosis ("CF") drugs — Kalydeco & Orkambi — performed well in 2017, with sales rising almost 30%. We expect this positive trend to continue in the soon-to-be reported quarter also. In a boost to Vertex’s CF franchise, the FDA approved Vertex’s third CF drug, Symdeko, which is a combination of tezacaftor and ivacaftor, in February 2018. We expect the company to provide update on Symdeko’s commercialization plan and its initial uptake. The company is also likely to provide full-year revenue guidance including Symdeko sales on the call.(Read More:Is a Beat in Store for Vertex This Earnings Season?).
Vertex Pharmaceuticals Incorporated Price and EPS Surprise
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Image: Bigstock
Drug Stock Q1 Earnings Due on Apr 26: ABBV, ALXN, BMY & VRTX
The Q1 earnings season has started to gather steam. Per the latest Earnings Preview, 87 S&P 500 members — accounting for 17.4% of the index — have already released financial figures as of Apr 20, 2018.
Total earnings for the 87 S&P 500 members that have reported results already are up 25% from the same period last year on 10.7% higher revenues, with 82.8% beating EPS estimates and 67.8% beating revenue estimates. The proportion of companies beating both EPS and revenue estimates is 62.1%.
The ongoing earnings phase seems to have also begun encouragingly for the Drug/Biotech sector. Among the major large cap players, Johnson & Johnson (JNJ - Free Report) kicked off the season on a strong note, beating the Zacks Consensus Estimate for both earnings as well as sales. Another large cap player that reported earnings last week was Novartis (NVS - Free Report) , which also surpassed both earnings and revenue expectations this quarter. Also Biogen Inc. (BIIB - Free Report) which released its results this week surpassed earnings but missed sales expectations.
Higher demand is expected to boost new product sales. Also, innovation and successful product line expansion along with positive clinical study results, FDA approvals, and consistent performance of key products, growing demand for drugs, especially for rare-to-treat diseases, an ageing population as well as an increased healthcare expenditure are some of the factors that should keep the sector on a growth trajectory.
Also, according to the Earnings Preview, the broader Medical sector (inclusive of drug, biotech as well as Medical Device companies) is likely to record 6.8% year-over-year growth in revenues and a 9.4% rise in earnings in the quarter under review.
Four pharma/biotech giants are scheduled to report Q1 earnings results on Apr 26. Let's see, how things are shaping up for the companies in the upcoming releases.
AbbVie Inc. (ABBV - Free Report) is slated to releaseresults before the market opens. The company delivered a positive earnings surprise of 2.78% in the last reported quarter. Moreover, the company’s performance has been impressive in the recent past with its earnings surpassing expectations in the trailing four quarters with an average positive earnings surprise of 1.81%.
Our proven model shows that AbbVie is likely to beat on earnings in the to-be-reported quarter because it has the right combination of two key ingredients — a positive Earnings ESP of 0.06% and a Zacks Rank # 3 (Hold). The Zacks Consensus Estimate for the company’s earnings for the quarter under review is pegged at $1.80 per share.
The company’s key drug, Humira, is likely to remain a key growth driver in the first quarter, backed by strong demand trends for the drug. AbbVie expects Humira sales to reflect a rise in the low-teens band in the imminent earnings release while internationally, the growth rate is projected in a mid-single-digit range, operationally. Other drugs, namely Duopa and Creon are also likely to maintain an encouraging performance in the soon-to-be-reported quarter. (Read More:Is a Beat in the Cards for AbbVie in Q1 Earnings?)
AbbVie Inc. Price and EPS Surprise
AbbVie Inc. Price and EPS Surprise | AbbVie Inc. Quote
Alexion PharmaceuticalsInc. is slated to report results before the opening bell. The company delivered a positive earnings surprise of 15.63% in the last reported quarter. The company’s track record is excellent as it has consistently topped estimates in the last four quarters, with an average positive earnings surprise of 15.21%.
Alexion is likely to beat on earnings in the to-be-reported quarter because it has a positive Earnings ESP of 0.23% and a Zacks Rank # 2 (Buy). The Zacks Consensus Estimate for the quarterly earnings is pegged at $1.48 per share. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alexion’s blockbuster drug, Soliris, continues to perform well.The company is working on expanding Soliris’ label into additional indications. Alexion recently announced that it will acquire Sweden-based Wilson Therapeutics for $855 million. The transaction is expected to close in the second quarter. The acquisition will add a late-stage candidate, WTX101 to Alexion’s pipeline. The candidate is currently in phase III for the treatment of Wilson disease, a rare genetic disorder.
Alexion is looking to diversify its portfolio and reduce its dependence on its blockbuster drug Soliris. The deal will strengthen Alexion’s rare disease pipeline with a late-stage candidate. (Read More:Is a Beat in Store for Alexion This Earnings Season?)
Alexion Pharmaceuticals, Inc. Price and EPS Surprise
Alexion Pharmaceuticals, Inc. Price and EPS Surprise | Alexion Pharmaceuticals, Inc. Quote
Bristol-Myers Squibb (BMY - Free Report) is slated to report results before the opening bell.The company delivered a positive earnings surprise of 1.49% last quarter. The company’s delivered a positive earnings surprise in three of the trailing four quarters with an average beat of 4.23%.
Our model shows that Bristol-Myers is likely to beat estimates this quarter. The combination of Bristol-Myers’ Zacks Rank of 3 and a positive Earnings ESP of 0.82% makes us confident about an earnings beat in the upcoming report. The consensus mark for the quarter to be reported is pegged at 84 cents per share.
Bristol-Myers’ blockbuster immuno-oncology drug, Opdivo is expected to remain the main sales driver in the first quarter, following several line extensions in 2017. In the soon-to-be reported quarter, the company announced encouraging results from a phase III study evaluating Opdivo in first-line non-small cell lung cancer. Label expansion of leukemia drug, Sprycel, approved in November 2017, should bring in more sales for the drug. Moreover, continued strong performance of Yervoy and Orencia will have a favorable impact. (Read More: Is a Beat in Store for Bristol-Myers in Q1 Earnings?)
Bristol-Myers Squibb Company Price and EPS Surprise
Bristol-Myers Squibb Company Price and EPS Surprise | Bristol-Myers Squibb Company Quote
Vertex Pharmaceuticals Incorporated (VRTX - Free Report) is slated to report results after the market closes. Vertex’s track record has been impressive so far. The company delivered positive earnings surprises in each of the last four quarters. The average positive earnings surprise for the last four quarters is 25.31%. In the last reported quarter, Vertex delivered a positive earnings surprise of 5.17%.
Our model shows that Vertex is likely to beat estimates this quarter. The combination of Bristol-Myers’ Zacks Rank of 3 and a positive Earnings ESP of 8.28% makes us confident about an earnings beat in the upcoming report. The consensus mark for the quarter to be reported is pegged at 57 cents per share.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Vertex’s cystic fibrosis ("CF") drugs — Kalydeco & Orkambi — performed well in 2017, with sales rising almost 30%. We expect this positive trend to continue in the soon-to-be reported quarter also. In a boost to Vertex’s CF franchise, the FDA approved Vertex’s third CF drug, Symdeko, which is a combination of tezacaftor and ivacaftor, in February 2018. We expect the company to provide update on Symdeko’s commercialization plan and its initial uptake. The company is also likely to provide full-year revenue guidance including Symdeko sales on the call.(Read More:Is a Beat in Store for Vertex This Earnings Season?).
Vertex Pharmaceuticals Incorporated Price and EPS Surprise
Vertex Pharmaceuticals Incorporated Price and EPS Surprise | Vertex Pharmaceuticals Incorporated Quote
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>