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BIIB, ALKS Q3 Earnings Due on Oct 23: What's in Store?
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About 600 companies are slated to release their Q3 results this week, including 154 S&P 500 members. Results from 17% of the index’s total membership are already out, and the growth rate of the first half of the year seems to be continuing into the third quarter as well.
Story So Far
As of Oct 19, 84 S&P 500 companies have reported earnings results, which account for about 22.3% of the total market capitalization of the index. According to the latest Earnings Preview, total earnings for these companies are up 19.2% from the same period last year on 8.4% higher revenues. Meanwhile, 82.1% of these companies surpassed earnings estimates, while 61.9% beat revenue estimates.
Two giant drug makers have reported third-quarter results last week. Johnson & Johnson(JNJ - Free Report) ended the third quarter pharma earnings on a strong note by beating the Zacks Consensus Estimate on both the counts. The drug and consumer products giant raised its previously issued sales and earnings guidance for 2018. Swiss pharma giant Novartis AG (NVS - Free Report) beat sales estimates in the third quarter, while earnings came in line.
Here we have two other pharma/biotech companies, which are scheduled to release their second-quarter earnings on Oct 23. Let's see how things are shaping up for these announcements.
The biotechnology company logged a positive earnings surprise of 11.11% in the last reported quarter. The company has a mixed earnings surprise record, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Overall, the company delivered an average positive surprise of 5.13%. The Zacks Consensus Estimate for the third quarter stands at $6.80.
Biogen’s shares have increased 0.5% year to date compared with the industry’s decline of 14.8%.
Our proven model does not conclusively show that Biogen is likely to beat on earnings this quarter. This is because the company carries a Zacks Rank #3 (Hold) and has an Earnings ESP of -0.15%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the second quarter of 2018, performance of Biogen’s multiple sclerosis ("MS") drugs improved compared to the first quarter as patient growth in international markets offset decline in the United States due to competitive pressure from Roche’s (RHHBY - Free Report) newly launched MS drug, Ocrevus. U.S. MS sales should continue to remain soft in the third quarter.
International MS sales should remain strong in the third quarter supported by patient growth of Tecfidera across major European markets and strong emerging market growth.
Research and development costs are expected to be higher due to business development deals made in the first half of the year.
Strong sales trend should continue in the third quarter for Biogen’s new drug, Spinraza. (Read more: Biogen (BIIB - Free Report) Q3 Earnings Coming Up: What's in the Cards?)
The company logged a positive earnings surprise of 190% in the last reported quarter. The company has a mixed earnings surprise record, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Overall, the company delivered an average positive surprise of 106.28%. The Zacks Consensus Estimate for the third quarter stands at a loss of 6 cents.
Alkermes’ shares have declined 26.6% year to date compared with the industry’s decline of 14.8%.
Our proven model does not conclusively show that Alkermes is likely to beat on earnings this quarter. This is because the company has a Zacks Rank #2 (Buy) and an Earnings ESP of -24.32%.
Alkermes’ revenues are being driven by its proprietary products, Vivitrol and Aristada, and the five partnered products — Risperdal Consta, Invega Sustenna/Xeplion, Invega Trinza/Trevicta, Ampyra/Fampyra and Bydureon. We expect these products to continue contributing to the company’s top-line growth in the third quarter.
The company is expected to provide updates on its pipeline. Its lead pipeline candidate, ALKS 5461, being developed for the treatment of major depressive disorder (MDD), is under review by the FDA with decision expected on Jan 31, 2019.
Another candidate, ALKS 3831 is in phase III for the treatment of schizophrenia. Top-line data on the candidate is expected in the fourth quarter of 2018 and if the results are positive, the company expects to submit the new drug application (NDA) in the first half of 2019.
In September, Alkermes expanded its ongoing phase I study for ALKS 4230, to evaluate its safety and anti-tumor activity when administered in combination with Merck’s (MRK - Free Report) PD-1 inhibitor, Keytruda (pembrolizumab) in patients with advanced solid tumors. We expect an update on the combination in the third quarter earnings call.
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BIIB, ALKS Q3 Earnings Due on Oct 23: What's in Store?
About 600 companies are slated to release their Q3 results this week, including 154 S&P 500 members. Results from 17% of the index’s total membership are already out, and the growth rate of the first half of the year seems to be continuing into the third quarter as well.
Story So Far
As of Oct 19, 84 S&P 500 companies have reported earnings results, which account for about 22.3% of the total market capitalization of the index. According to the latest Earnings Preview, total earnings for these companies are up 19.2% from the same period last year on 8.4% higher revenues. Meanwhile, 82.1% of these companies surpassed earnings estimates, while 61.9% beat revenue estimates.
Two giant drug makers have reported third-quarter results last week. Johnson & Johnson (JNJ - Free Report) ended the third quarter pharma earnings on a strong note by beating the Zacks Consensus Estimate on both the counts. The drug and consumer products giant raised its previously issued sales and earnings guidance for 2018. Swiss pharma giant Novartis AG (NVS - Free Report) beat sales estimates in the third quarter, while earnings came in line.
Here we have two other pharma/biotech companies, which are scheduled to release their second-quarter earnings on Oct 23. Let's see how things are shaping up for these announcements.
Biogen, Inc. (BIIB - Free Report)
The biotechnology company logged a positive earnings surprise of 11.11% in the last reported quarter. The company has a mixed earnings surprise record, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Overall, the company delivered an average positive surprise of 5.13%. The Zacks Consensus Estimate for the third quarter stands at $6.80.
Biogen’s shares have increased 0.5% year to date compared with the industry’s decline of 14.8%.
Our proven model does not conclusively show that Biogen is likely to beat on earnings this quarter. This is because the company carries a Zacks Rank #3 (Hold) and has an Earnings ESP of -0.15%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the second quarter of 2018, performance of Biogen’s multiple sclerosis ("MS") drugs improved compared to the first quarter as patient growth in international markets offset decline in the United States due to competitive pressure from Roche’s (RHHBY - Free Report) newly launched MS drug, Ocrevus. U.S. MS sales should continue to remain soft in the third quarter.
International MS sales should remain strong in the third quarter supported by patient growth of Tecfidera across major European markets and strong emerging market growth.
Research and development costs are expected to be higher due to business development deals made in the first half of the year.
Strong sales trend should continue in the third quarter for Biogen’s new drug, Spinraza. (Read more: Biogen (BIIB - Free Report) Q3 Earnings Coming Up: What's in the Cards?)
Alkermes Plc (ALKS - Free Report)
The company logged a positive earnings surprise of 190% in the last reported quarter. The company has a mixed earnings surprise record, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Overall, the company delivered an average positive surprise of 106.28%. The Zacks Consensus Estimate for the third quarter stands at a loss of 6 cents.
Alkermes’ shares have declined 26.6% year to date compared with the industry’s decline of 14.8%.
Our proven model does not conclusively show that Alkermes is likely to beat on earnings this quarter. This is because the company has a Zacks Rank #2 (Buy) and an Earnings ESP of -24.32%.
Alkermes’ revenues are being driven by its proprietary products, Vivitrol and Aristada, and the five partnered products — Risperdal Consta, Invega Sustenna/Xeplion, Invega Trinza/Trevicta, Ampyra/Fampyra and Bydureon. We expect these products to continue contributing to the company’s top-line growth in the third quarter.
The company is expected to provide updates on its pipeline. Its lead pipeline candidate, ALKS 5461, being developed for the treatment of major depressive disorder (MDD), is under review by the FDA with decision expected on Jan 31, 2019.
Another candidate, ALKS 3831 is in phase III for the treatment of schizophrenia. Top-line data on the candidate is expected in the fourth quarter of 2018 and if the results are positive, the company expects to submit the new drug application (NDA) in the first half of 2019.
In September, Alkermes expanded its ongoing phase I study for ALKS 4230, to evaluate its safety and anti-tumor activity when administered in combination with Merck’s (MRK - Free Report) PD-1 inhibitor, Keytruda (pembrolizumab) in patients with advanced solid tumors. We expect an update on the combination in the third quarter earnings call.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>