The drug/biotech sector’s earnings season is approaching its end. Overall, it was a mixed earnings season for the drug and biotech sector. Most companies beat estimates for earnings while missing the same for sales or vice versa. However, some companies like Merck and Vertex have not only been able to beat consensus estimates but also issued better-than-expected guidance for 2022.
Per the Zacks classification, the pharma/biotech industry comes under the broader Medical sector, which comprises pharma/biotech as well as medical device companies.
Per the Earnings Trends report, as of Feb 16, 80.4% of the companies in the Medical sector, constituting nearly 91.5% of the sector’s market capitalization, have reported earnings. Of these, 71.7% of the companies beat earnings as well sales estimates. Earnings increased 18.5% year over year on 12.7% higher revenues.
Overall, fourth-quarter earnings of the Medical sector are expected to rise 25.8% on a 13.9% sales increase.
Let’s analyze five drug/biotech companies — Perrigo Company (PRGO - Free Report) , Jazz Pharmaceuticals (JAZZ - Free Report) , Horizon Therapeutics Public Limited Company , Sarepta Therapeutics (SRPT - Free Report) and Axsome Therapeutics (AXSM - Free Report) — that are set to report fourth-quarter 2021 results on Mar 1.
Perrigo Company
Perrigo missed earnings estimates in each of the trailing four quarters, the average negative surprise being 16.86%. In the last-reported quarter, the company missed expectations by 30.77%.
Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) have a good chance of delivering earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
This company hasan Earnings ESP of +4.73% and a Zacks Rank #3. The Zacks Consensus Estimate for earnings stands at 56 cents per share.
Significant sales growth of new products, the contribution from acquisitionsand a potential recovery in sales of cough/cold products are likely to have aided Perrigo’s top line in the fourth quarter.
Jazz Pharmaceuticals
The company’s earnings surprise history has been mixed with its earnings beating estimates in three of the trailing four quarters while missing the same on one occasion, delivering an earnings surprise of 10.52%, on average. In the last-reported quarter, Jazz delivered an earnings surprise of 28.44%.
This Zacks Rank #3 company has an Earnings ESP of +0.84%. The Zacks Consensus Estimate stands at $3.70 per share.
Horizon Therapeutics
Horizon Therapeutics’ performance has been mixed with its earnings beating estimates in three of the trailing four quarters and missing the same on one occasion. The company delivered a four-quarter positive earnings surprise of 14.11%, on average.
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The drug/biotech sector’s earnings season is approaching its end. Overall, it was a mixed earnings season for the drug and biotech sector. Most companies beat estimates for earnings while missing the same for sales or vice versa. However, some companies like Merck and Vertex have not only been able to beat consensus estimates but also issued better-than-expected guidance for 2022.
Per the Zacks classification, the pharma/biotech industry comes under the broader Medical sector, which comprises pharma/biotech as well as medical device companies.
Per the Earnings Trends report, as of Feb 16, 80.4% of the companies in the Medical sector, constituting nearly 91.5% of the sector’s market capitalization, have reported earnings. Of these, 71.7% of the companies beat earnings as well sales estimates. Earnings increased 18.5% year over year on 12.7% higher revenues.
Overall, fourth-quarter earnings of the Medical sector are expected to rise 25.8% on a 13.9% sales increase.
Let’s analyze five drug/biotech companies — Perrigo Company (PRGO - Free Report) , Jazz Pharmaceuticals (JAZZ - Free Report) , Horizon Therapeutics Public Limited Company , Sarepta Therapeutics (SRPT - Free Report) and Axsome Therapeutics (AXSM - Free Report) — that are set to report fourth-quarter 2021 results on Mar 1.
Perrigo Company
Perrigo missed earnings estimates in each of the trailing four quarters, the average negative surprise being 16.86%. In the last-reported quarter, the company missed expectations by 30.77%.
Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) have a good chance of delivering earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
This company hasan Earnings ESP of +4.73% and a Zacks Rank #3. The Zacks Consensus Estimate for earnings stands at 56 cents per share.
Significant sales growth of new products, the contribution from acquisitionsand a potential recovery in sales of cough/cold products are likely to have aided Perrigo’s top line in the fourth quarter.
Jazz Pharmaceuticals
The company’s earnings surprise history has been mixed with its earnings beating estimates in three of the trailing four quarters while missing the same on one occasion, delivering an earnings surprise of 10.52%, on average. In the last-reported quarter, Jazz delivered an earnings surprise of 28.44%.
This Zacks Rank #3 company has an Earnings ESP of +0.84%. The Zacks Consensus Estimate stands at $3.70 per share.
Horizon Therapeutics
Horizon Therapeutics’ performance has been mixed with its earnings beating estimates in three of the trailing four quarters and missing the same on one occasion. The company delivered a four-quarter positive earnings surprise of 14.11%, on average.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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