Several smaller drug and biotech companies are due to report their earnings this week. Almost all big drugmakers have already reported their results. The fourth-quarter earnings season was a mixed bag for these large drug/biotech companies. While Lilly, Gilead, AstraZeneca, Regeneron and J&J beat estimates for both earnings and sales, Merck, Sanofi and Novartis missed on both counts. Others like Pfizer, Biogen and Glaxo missed estimates for earnings while beating the same for sales.
Per the Zacks classification, the pharma/biotech industry comes under the broader Medical sector, which comprises pharma/biotech as well as medical device companies.
Earnings Trends report as of Feb 17, 85.5% of the companies in the Medical sector, constituting nearly 93.5% of the sector’s market capitalization, reported earnings. While 78.7% beat earnings estimates, 85.1% beat the same for sales. Earnings increased 16.8% year over year on 13.3% higher revenues. Overall, fourth-quarter earnings for the Medical sector are expected to rise 14.6% on 12.9% sales increase.
Let’s analyze the five drug/biotech companies that are set to report fourth-quarter 2020 results on Feb 23.
Jazz Pharmaceuticals ( JAZZ Quick Quote JAZZ - Free Report)
Jazz Pharmaceuticals has a mixed earnings track record. It surpassed earnings estimates thrice in the past four quarters while missing in one, recording an average negative earnings surprise of 2.22%.
Jazz has an
Earnings ESP of +1.00% and a Zacks Rank #5 (Sell).
The Zacks Consensus Estimate for earnings stands at $4.10 per share.
Per our proven model, stocks 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. Arena Pharmaceuticals ( ARNA Quick Quote ARNA - Free Report)
The biotech’s earnings beat the Zacks Consensus Estimate in three of the last four quarters with the average surprise being 9.36%.
This #3 Ranked company has an Earnings ESP of 0.00%. The Zacks Consensus Estimate for loss stands at $1.97 per share per share.
Esperion Therapeutics ( ESPR Quick Quote ESPR - Free Report)
The company surpassed expectations in the trailing four quarters by 35.44%, on average.
Esperion has an Earnings ESP of -7.12% and a Zacks Rank #3. You can see
the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for loss stands at $3.76 per share.
The company has a mixed track record. It missed earnings expectations twice in the last four quarters and beat the same on the other two occasions. The average earnings surprise was 5.42%
Epizyme has an Earnings ESP of 0.00% and it carries a Zacks Rank #3.
The Zacks Consensus Estimate for loss stands at 59 cents per share.
Halozyme Therapeutics ( HALO Quick Quote HALO - Free Report)
The biotech’s earnings missed the Zacks Consensus Estimate in three of the last four quarters with the average negative surprise being 83.08%.
This #3 Ranked company has an Earnings ESP of -5.92%. The Zacks Consensus Estimate for earnings stands at 56 cents per share per share.
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