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Biotech Stocks Earnings Lineup for Oct 24: VRTX, ALXN & SRPT
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The third-quarter earnings season has started to gain steam. Results from 16.8% of the index’s total membership that have already reported reflect strong growth. However, the growth trend has been slower compared to the first half of 2018. About 600 companies are slated to release results this week, including 154 S&P 500 members.
Story So Far
As of Oct 19, 2018, 84 S&P 500 members, accounting for 22.3% of the index’s total market capitalization, reported results, per Earnings Preview. Of these, 54.8% companies beat estimates on both counts. While 82.1% of these 84 companies beat earnings, 61.9% surpassed revenue estimates.
Total earnings of these index members were up 19.2% from the year-ago quarter on an 8.4% improvement in revenues. Per the report, total earnings for S&P 500 companies in the third quarter are expected to grow 19.2% year over year on 7.2% higher revenues. Although bank stocks were in focus last week, a couple of biotech/pharma giants also reported. There are several pharma companies slated to report this week.
Johnson & Johnson (JNJ - Free Report) began the earnings season for the pharma sector with strong third-quarter results, beating estimates on both counts. The company also raised its guidance for sales and earnings for 2018. Another pharma giant, Novartis (NVS - Free Report) , reported a mixed quarter. The company’s sales surpassed estimates while earnings matched the same. On its earning call, Novartis announced the acquisition of Endocyte to diversify its portfolio in radiopharmaceuticals.
Let’s take a look at three pharma/biotech companies that are set to report third-quarter results on Oct 24. Let's see how things are shaping up for this quarter.
Vertex, which is scheduled to release earnings after market close, delivered a positive earnings surprise of 30.56% last quarter. Vertex’s earnings beat expectations in all the last four quarters with an average positive surprise of 27.5%.
For this quarter, Vertex has an Earnings ESP of +3.01% and a Zacks Rank #3 (Hold), indicating a likely beat. The Zacks Consensus Estimate is pegged at $1.00 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”) drug portfolio has performed well so far this year. Sales of the third CF drug, Symdeko is picking up well following its launch in February and is expected to boost the top-line significantly. Kalydeco should also witnesses strong demand in expanded patient population boosting its sales. However, Orkambi sales may be hurt due to patient switching to Symdeko. (Read more: Is a Beat in Store for Vertex This Earnings Season?)
Vertex Pharmaceuticals Incorporated Price and EPS Surprise
Alexion Pharma is scheduled to announce results before the closing bell.The company delivered a positive earnings surprise of 22.49% last quarter. Alexion Pharma beat estimates in each of the past four quarters and delivered an average positive earnings surprise of 14.98%.
Alexion’s blockbuster drug, Soliris, has been witnessing rising demand among patients with paroxysmal nocturnal hemoglobinuria and atypical hemolytic uremic syndrome. The trend is expected to continue this quarter. The company is also focused on expanding the drug’s label further as well as diversifying its product and pipeline through acquisitions. These will likely boost the company’s top line going forward. In September 2018, Alexion announced the acquisition of a clinical-stage biotechnology company, Syntimmune, for $1.2 billion. (Read more: Alexion to Report Q3 Earnings: What's in the Cards?)
Alexion Pharmaceuticals, Inc. Price and EPS Surprise
The company is expected to report after market closes. Sarepta delivered an earnings surprise of 8.51% last quarter. Sarepta’s performance has been mixed, with the company reporting positive surprise in three of the last four quarter while missing the same once. The average earnings beat over the last four quarters is 2.74%.
The company has an Earnings ESP of -12.74% and a Zacks Rank #3.The Zacks Consensus Estimate is pegged at a loss of 34 cents per share.
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Biotech Stocks Earnings Lineup for Oct 24: VRTX, ALXN & SRPT
The third-quarter earnings season has started to gain steam. Results from 16.8% of the index’s total membership that have already reported reflect strong growth. However, the growth trend has been slower compared to the first half of 2018. About 600 companies are slated to release results this week, including 154 S&P 500 members.
Story So Far
As of Oct 19, 2018, 84 S&P 500 members, accounting for 22.3% of the index’s total market capitalization, reported results, per Earnings Preview. Of these, 54.8% companies beat estimates on both counts. While 82.1% of these 84 companies beat earnings, 61.9% surpassed revenue estimates.
Total earnings of these index members were up 19.2% from the year-ago quarter on an 8.4% improvement in revenues. Per the report, total earnings for S&P 500 companies in the third quarter are expected to grow 19.2% year over year on 7.2% higher revenues. Although bank stocks were in focus last week, a couple of biotech/pharma giants also reported. There are several pharma companies slated to report this week.
Johnson & Johnson (JNJ - Free Report) began the earnings season for the pharma sector with strong third-quarter results, beating estimates on both counts. The company also raised its guidance for sales and earnings for 2018. Another pharma giant, Novartis (NVS - Free Report) , reported a mixed quarter. The company’s sales surpassed estimates while earnings matched the same. On its earning call, Novartis announced the acquisition of Endocyte to diversify its portfolio in radiopharmaceuticals.
Let’s take a look at three pharma/biotech companies that are set to report third-quarter results on Oct 24. Let's see how things are shaping up for this quarter.
Vertex Pharmaceuticals, Inc. (VRTX - Free Report)
Vertex, which is scheduled to release earnings after market close, delivered a positive earnings surprise of 30.56% last quarter. Vertex’s earnings beat expectations in all the last four quarters with an average positive surprise of 27.5%.
For this quarter, Vertex has an Earnings ESP of +3.01% and a Zacks Rank #3 (Hold), indicating a likely beat. The Zacks Consensus Estimate is pegged at $1.00 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”) drug portfolio has performed well so far this year. Sales of the third CF drug, Symdeko is picking up well following its launch in February and is expected to boost the top-line significantly. Kalydeco should also witnesses strong demand in expanded patient population boosting its sales. However, Orkambi sales may be hurt due to patient switching to Symdeko. (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
Alexion Pharmaceuticals, Inc.
Alexion Pharma is scheduled to announce results before the closing bell.The company delivered a positive earnings surprise of 22.49% last quarter. Alexion Pharma beat estimates in each of the past four quarters and delivered an average positive earnings surprise of 14.98%.
The company has an Earnings ESP of -0.61% and a Zacks Rank #3. The Zacks Consensus Estimate is pegged at earnings of $1.75 per share. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alexion’s blockbuster drug, Soliris, has been witnessing rising demand among patients with paroxysmal nocturnal hemoglobinuria and atypical hemolytic uremic syndrome. The trend is expected to continue this quarter. The company is also focused on expanding the drug’s label further as well as diversifying its product and pipeline through acquisitions. These will likely boost the company’s top line going forward. In September 2018, Alexion announced the acquisition of a clinical-stage biotechnology company, Syntimmune, for $1.2 billion. (Read more: Alexion to Report Q3 Earnings: What's in the Cards?)
Alexion Pharmaceuticals, Inc. Price and EPS Surprise
Alexion Pharmaceuticals, Inc. Price and EPS Surprise | Alexion Pharmaceuticals, Inc. Quote
Sarepta Therapeutics, Inc. (SRPT - Free Report)
The company is expected to report after market closes. Sarepta delivered an earnings surprise of 8.51% last quarter. Sarepta’s performance has been mixed, with the company reporting positive surprise in three of the last four quarter while missing the same once. The average earnings beat over the last four quarters is 2.74%.
The company has an Earnings ESP of -12.74% and a Zacks Rank #3.The Zacks Consensus Estimate is pegged at a loss of 34 cents per share.
Sarepta Therapeutics, Inc. Price and EPS Surprise
Sarepta Therapeutics, Inc. Price and EPS Surprise | Sarepta Therapeutics, Inc. Quote
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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