The pharma bellwether, Johnson & Johnson (JNJ - Free Report) , marked the beginning of earnings season for pharma/drug/biotech companies from the Medical sector when it reported its fourth-quarter results on Jan 25, 2022. This was followed by fourth-quarter results of large-cap biotech, Vertex Pharmaceuticals, and generic drugmaker, Dr. Reddy's Laboratories, last week. J&J’s results were mixed with earnings beating estimates but sales missing the same. Revenues and earnings improved for Dr. Reddy's Laboratories year over year. Vertex reported encouraging fourth-quarter results, beating estimates on both counts. The company expects its revenues in 2022 to grow by almost 12% year over year (at the mid-point of the guided range).
The earnings scenario is favorable for the big pharma company, AbbVie (ABBV - Free Report) , scheduled to release fourth quarter results on Feb 2. Two other companies that slated to release quarterly results tomorrow are — Novartis (NVS - Free Report) and Novo Nordisk (NVO - Free Report) .
Several big pharma and biotech companies are slated to release their fourth-quarter results this week, which will set the forward trend for the pharma and biotech sectors. These two medical sectors have declined so far this year. We note that key drugs in J&J’s and Vertex’s portfolio demonstrated robust growth in sales. However, a few of J&J’s drugs showed the residual impact of COVID-19. Fourth-quarter results of other pharma/biotech companies will provide more clarity on the impact of COVID-19 on drug sales.
Per the Earnings Trends report, as of Jan 26, 8.9% of the companies in the Medical sector, constituting nearly 29.2% of the sector’s market capitalization, have reported earnings. While 80% beat earnings estimates, 60% beat the same for sales. Earnings increased 27% year over year on 12.2% higher revenues.
Overall, fourth-quarter earnings of the Medical sector are expected to rise 18.4% on a 12.2% sales increase. These suggest that analysts are expecting the recovery of the Medical sector to have continued in the fourth quarter despite high COVID-19 infections.
Let’s analyze three pharma companies set to report fourth-quarter 2021 results on Feb 2.
Humira and Botox-owner, AbbVie is scheduled to report before market open.
The company’s performance has been encouraging so far, with earnings beating estimates in all the trailing four quarters. AbbVie delivered a four-quarter earnings surprise of 3.02%, on average. In the last-reported quarter, the company’s earnings beat estimates by 3.1%.
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for earnings stands at $3.29 per share. For the quarter to be reported, AbbVie has an Earnings ESP of +0.08% and a Zacks Rank #3, indicating a likely earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Strong demand for immunology drugs, aesthetics and cosmetics are expected to have driven sales in the fourth quarter of 2021. Moreover, new drug launches in the past few quarters are likely to have brought additional sales during the fourth quarter. However, the Omicron outbreak since September 2021 could have hurt patient volumes, especially for physician-administered drugs. (Read more: Is a Beat Likely for AbbVie This Earnings Season?)
Novartis, which has a mixed earnings track record so far, is also scheduled to report results before market open.
The company beat earnings estimates in two of the trailing four quarters and missed the same twice, with the average being 1.36%. In the last-reported quarter, the company’s earnings beat estimates by 3.64%. The company has an Earnings ESP is 0.00% and carries a Zacks Rank #3. The Zacks Consensus Estimate for earnings stands at $1.44 per ADS.
Solid momentum in key brands like psoriasis drug, Cosentyx, a cardiovascular drug, Entresto, gene therapy, Zolgensma, the oncology portfolio and the launch of Kesimpta are likely to have boosted revenues in the fourth quarter. However, the Sandoz division is likely to have hurt the top line due to pricing pressures.
A leader in the worldwide diabetes market, Novo Nordisk, is scheduled to report results before market open.
In the last-reported quarter, the company beat earnings expectations by 5.00%. The company beat earnings estimates in each of the trailing four quarters with the average being 9.18%.
Novo Nordisk has an Earnings ESP of +0.94% and a Zacks Rank of 5 (Strong Sell). The Zacks Consensus Estimate for earnings stands at 71 cents per ADS.
Novo Nordisk’s revenues in the last-reported quarter increased, driven by higher sales of Diabetes and Obesity Care products, a trend that most likely continued in the fourth quarter as well.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand picked 7 your immediate attention.
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The pharma bellwether, Johnson & Johnson (JNJ - Free Report) , marked the beginning of earnings season for pharma/drug/biotech companies from the Medical sector when it reported its fourth-quarter results on Jan 25, 2022. This was followed by fourth-quarter results of large-cap biotech, Vertex Pharmaceuticals, and generic drugmaker, Dr. Reddy's Laboratories, last week. J&J’s results were mixed with earnings beating estimates but sales missing the same. Revenues and earnings improved for Dr. Reddy's Laboratories year over year. Vertex reported encouraging fourth-quarter results, beating estimates on both counts. The company expects its revenues in 2022 to grow by almost 12% year over year (at the mid-point of the guided range).
The earnings scenario is favorable for the big pharma company, AbbVie (ABBV - Free Report) , scheduled to release fourth quarter results on Feb 2. Two other companies that slated to release quarterly results tomorrow are — Novartis (NVS - Free Report) and Novo Nordisk (NVO - Free Report) .
Several big pharma and biotech companies are slated to release their fourth-quarter results this week, which will set the forward trend for the pharma and biotech sectors. These two medical sectors have declined so far this year. We note that key drugs in J&J’s and Vertex’s portfolio demonstrated robust growth in sales. However, a few of J&J’s drugs showed the residual impact of COVID-19. Fourth-quarter results of other pharma/biotech companies will provide more clarity on the impact of COVID-19 on drug sales.
Per the Earnings Trends report, as of Jan 26, 8.9% of the companies in the Medical sector, constituting nearly 29.2% of the sector’s market capitalization, have reported earnings. While 80% beat earnings estimates, 60% beat the same for sales. Earnings increased 27% year over year on 12.2% higher revenues.
Overall, fourth-quarter earnings of the Medical sector are expected to rise 18.4% on a 12.2% sales increase. These suggest that analysts are expecting the recovery of the Medical sector to have continued in the fourth quarter despite high COVID-19 infections.
Let’s analyze three pharma companies set to report fourth-quarter 2021 results on Feb 2.
Humira and Botox-owner, AbbVie is scheduled to report before market open.
The company’s performance has been encouraging so far, with earnings beating estimates in all the trailing four quarters. AbbVie delivered a four-quarter earnings surprise of 3.02%, on average. In the last-reported quarter, the company’s earnings beat estimates by 3.1%.
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for earnings stands at $3.29 per share. For the quarter to be reported, AbbVie has an Earnings ESP of +0.08% and a Zacks Rank #3, indicating a likely earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Strong demand for immunology drugs, aesthetics and cosmetics are expected to have driven sales in the fourth quarter of 2021. Moreover, new drug launches in the past few quarters are likely to have brought additional sales during the fourth quarter. However, the Omicron outbreak since September 2021 could have hurt patient volumes, especially for physician-administered drugs. (Read more: Is a Beat Likely for AbbVie This Earnings Season?)
Novartis, which has a mixed earnings track record so far, is also scheduled to report results before market open.
The company beat earnings estimates in two of the trailing four quarters and missed the same twice, with the average being 1.36%. In the last-reported quarter, the company’s earnings beat estimates by 3.64%. The company has an Earnings ESP is 0.00% and carries a Zacks Rank #3. The Zacks Consensus Estimate for earnings stands at $1.44 per ADS.
Solid momentum in key brands like psoriasis drug, Cosentyx, a cardiovascular drug, Entresto, gene therapy, Zolgensma, the oncology portfolio and the launch of Kesimpta are likely to have boosted revenues in the fourth quarter. However, the Sandoz division is likely to have hurt the top line due to pricing pressures.
A leader in the worldwide diabetes market, Novo Nordisk, is scheduled to report results before market open.
In the last-reported quarter, the company beat earnings expectations by 5.00%. The company beat earnings estimates in each of the trailing four quarters with the average being 9.18%.
Novo Nordisk has an Earnings ESP of +0.94% and a Zacks Rank of 5 (Strong Sell). The Zacks Consensus Estimate for earnings stands at 71 cents per ADS.
Novo Nordisk’s revenues in the last-reported quarter increased, driven by higher sales of Diabetes and Obesity Care products, a trend that most likely continued in the fourth quarter as well.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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