For the drugs/biotech sector, the first-quarter earnings season has been rather mixed.
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 May 4, 75.9% of the companies in the Medical sector, constituting nearly 86.6% of the sector’s market capitalization, reported earnings. While 78% beat earnings estimates, 68.3% beat the same for sales. Earnings increased 22% year over year on 13.2% higher revenues. Overall, first-quarter earnings for the Medical sector are expected to rise 23.6% on 10.6% sales increase.
Let’s analyze four drug/biotech companies that are set to report first-quarter 2021 results on May 10.
Catalyst Pharmaceuticals ( CPRX Quick Quote CPRX - Free Report)
Catalyst Pharmahas a positive earnings track record with the company exceeding earnings expectations in all the last four quarters. The company has a four-quarter earnings surprise of 17.01%, on average.
This small biotech, which makes drugs for rare neurological diseases, has an
Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for earnings is pegged at 9 cents 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 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. Prothena Corporation ( PRTA Quick Quote PRTA - Free Report)
This neuroscience company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters while missing in the other two, the average negative surprise being 1.87%.
This Zacks Rank #2 (Buy) company has an Earnings ESP of 0.00%. The Zacks Consensus Estimate for loss stands at 80 cents per share.
Myovant Sciences ( MYOV Quick Quote MYOV - Free Report)
The company, which makes medicines for women's health diseases and other endocrine-related disorders, has a decent earnings surprise history, with the company exceeding earnings expectations in each of the last four quarters. The company has a four-quarter earnings surprise of 15.93%, on average.
Myovant Sciences has an Earnings ESP of -8.08% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate stands at a loss of 99 cents per share.
Harmony Biosciences ( HRMY Quick Quote HRMY - Free Report)
The company, which makes medicines for rare neurological disorders, started trading on Nasdaq Global Market from Aug 19, 2020. In the one quarter for which it has reported earnings since then, it delivered an earnings surprise of 127.27%.
Harmony Biosciences has an Earnings ESP of 0.00% and a Zacks Rank #4.
The Zacks Consensus Estimate for stands at loss of 2 cents per share.
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