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Bayer's (BAYRY) Q4 Earnings Match Estimates, Sales Miss

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Bayer AG (BAYRY - Free Report) reported fourth-quarter 2020 core earnings of 39 cents per American Depositary Receipt ("ADR"), which was in line with the Zacks Consensus Estimate but increased from 36 cents reported in the year-ago quarter.

Total sales in the quarter were $11.89 billion, down from $11.93 billion in the year-ago quarter. Sales also missed the Zacks Consensus Estimate of $12.34 billion.

Shares of the company have lost 7.8% in the past year against the industry’s growth of 12.5%.

All growth rates mentioned below are on a year-over-year basis and after adjusting for currency and portfolio changes.

Quarter and Full-Year 2020 Highlights

The company started reporting under three segments — Pharmaceuticals, Consumer Health and Crop Science — from the fourth quarter of 2019. Please note that the company had announced divestment of its Animal Health business to Elanco in 2019 and reports the segment under discontinued operations.

In the reported quarter, Crop Science sales were €4.176 billion, down 10.2% from the year-ago quarter.

Revenues in the Pharmaceuticals segment decreased 4.4% to €4.476 billion in the fourth quarter.

Consumer Health sales were down 6.5% year over year to €1.250 billion in the fourth quarter.

Full-Year 2020 Results

Bayer reported core earnings of $1.82 per American Depositary Receipt ("ADR") in 2020, which missed the Zacks Consensus Estimate of $1.93 but increased from $1.79 reported in 2019.

Total sales in the quarter were $47.19 billion, down from $48.77 billion in the year-ago quarter. Sales also missed the Zacks Consensus Estimate of $50.48 billion.

2021 Guidance

The company expects to post sales of about €42-€43 billion, indicating an increase of about 3%.

Bayer expects to generate core earnings per share of about €6.10 to €6.30.

Zacks Rank & Stocks to Consider

Bayer currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the healthcare sector include Acorda Therapeutics Inc. (ACOR - Free Report) , Atea Pharmaceuticals Inc. (AVIR - Free Report) and Clearside Biomedical Inc. (CLSD - Free Report) . All of them carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Acorda’s loss per share estimates have narrowed from $9.66 to $7.91 for 2020 over the past 60 days.

Atea’s earnings per share estimates have increased from $3.53 to $3.70 for 2021 over the past 60 days. Shares of the company have increased 163.6% in the past year.

Clearside’s loss per share estimates have narrowed from 38 cents to 28 cents for 2021 over the past 60 days. Shares of the company have increased 36.1% in the past year.

Bayer Aktiengesellschaft Price, Consensus and EPS Surprise

Bayer Aktiengesellschaft Price, Consensus and EPS Surprise

Bayer Aktiengesellschaft price-consensus-eps-surprise-chart | Bayer Aktiengesellschaft Quote

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