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Drug/Biotech Stocks Q2 Earnings Due on Aug 5: REGN, MRNA, ZTS, ILMN
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It has been a good earnings season for the pharma/biotech sector so far. A major chunk of pharma and biotech bigwigs have already reported results with the earnings picture looking reasonably well. Quite a few are scheduled to report later in the week. Bellwether Johnson & Johnson (JNJ - Free Report) beat on both earnings and revenues with broad-based growth. Pfizer too came out with strong results, riding high on the success of its COVID-19 vaccine. Novartis (NVS - Free Report) reported mixed second-quarter results with the business gradually recovering from the impacts of the coronavirus pandemic. Among the biotechs, Amgen, Gilead and Biogen beat on both earnings and sales in the second quarter. Moreover, the outlooks provided by most of these companies are encouraging.
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 Jul 28, 29.1% of the companies in the Medical sector, constituting nearly 50.5% of the sector’s market capitalization, reported earnings. While 93.8% beat earnings estimates, 100% beat the same for sales. Earnings increased 12.2% year over year on 20.2% higher revenues. Overall, second-quarter earnings for the Medical sector are expected to rise 23.2% on an 18.4% sales increase.
Regeneron has an impressive track record. In the last reported quarter, it beat earnings expectations by 12.51%. It surpassed earnings estimates by 14.40%, on average, in the last four quarters. The company currently has an Earnings ESP of +12.64% and a Zacks Rank #3.
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.
Strong performance of lead drug Eylea and asthma drug Dupixent is likely to have maintained momentum for the company in the quarter. Libtayo too might have boosted sales in the quarter.
Regeneron Pharmaceuticals, Inc. Price and EPS Surprise
Moderna has a mixed track record with earnings beating estimates in two of the last four quarters and missing in the other two, the negative surprise being 40%, on average. In the last reported quarter, it beat earnings expectations by 39.22%.
Per our proven model, Moderna is likely to report an earnings beat, as it currently has a Zacks Rank #3 and an Earnings ESP of +24.12%.
Moderna’s top line is likely to have been driven by the strong uptake of its COVID-19 vaccine, mRNA-1273, during the second quarter amid the pandemic.
The earnings surprise history has been excellent so far for Zoetis. It surpassed expectations in each of the trailing four quarters, delivering an earnings surprise of 21.35%, on average. In the last reported quarter, Zoetis delivered an earnings surprise of 21.15%.
Zoetis too is likely to report an earnings beat, as it currently has a Zacks Rank #3 and an Earnings ESP of +4.32%.
Strong sales from the dermatology portfolio might have maintained the momentum for the company in the second quarter. The company’s companion animal business has also been performing well, primarily owing to higher sales of the SimparicaTrio.
Illumina surpassed expectations in three of the trailing four quarters and missed in one, delivering an earnings surprise of 14.60%, on average. In the last reported quarter, it delivered an earnings surprise of 38.97%.
Illumina is likely to report an earnings beat, as it currently has a Zacks Rank #2 and an Earnings ESP of +2.36%.
Strength in its core business across all regions, with rise in both clinical and research customers, has likely fueled growth in the second quarter.
Image: Bigstock
Drug/Biotech Stocks Q2 Earnings Due on Aug 5: REGN, MRNA, ZTS, ILMN
It has been a good earnings season for the pharma/biotech sector so far. A major chunk of pharma and biotech bigwigs have already reported results with the earnings picture looking reasonably well. Quite a few are scheduled to report later in the week. Bellwether Johnson & Johnson (JNJ - Free Report) beat on both earnings and revenues with broad-based growth. Pfizer too came out with strong results, riding high on the success of its COVID-19 vaccine. Novartis (NVS - Free Report) reported mixed second-quarter results with the business gradually recovering from the impacts of the coronavirus pandemic. Among the biotechs, Amgen, Gilead and Biogen beat on both earnings and sales in the second quarter. Moreover, the outlooks provided by most of these companies are encouraging.
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 Jul 28, 29.1% of the companies in the Medical sector, constituting nearly 50.5% of the sector’s market capitalization, reported earnings. While 93.8% beat earnings estimates, 100% beat the same for sales. Earnings increased 12.2% year over year on 20.2% higher revenues. Overall, second-quarter earnings for the Medical sector are expected to rise 23.2% on an 18.4% sales increase.
Let’s analyze four drug/biotech companies — Regeneron (REGN - Free Report) , Moderna (MRNA - Free Report) , Zoetis (ZTS - Free Report) and Illumina (ILMN - Free Report) that are set to report second-quarter 2021 results on Aug 5.
Regeneron
Regeneron has an impressive track record. In the last reported quarter, it beat earnings expectations by 12.51%. It surpassed earnings estimates by 14.40%, on average, in the last four quarters. The company currently has an Earnings ESP of +12.64% and a Zacks Rank #3.
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.
Strong performance of lead drug Eylea and asthma drug Dupixent is likely to have maintained momentum for the company in the quarter. Libtayo too might have boosted sales in the quarter.
Regeneron Pharmaceuticals, Inc. Price and EPS Surprise
Regeneron Pharmaceuticals, Inc. price-eps-surprise | Regeneron Pharmaceuticals, Inc. Quote
Moderna
Moderna has a mixed track record with earnings beating estimates in two of the last four quarters and missing in the other two, the negative surprise being 40%, on average. In the last reported quarter, it beat earnings expectations by 39.22%.
Per our proven model, Moderna is likely to report an earnings beat, as it currently has a Zacks Rank #3 and an Earnings ESP of +24.12%.
Moderna’s top line is likely to have been driven by the strong uptake of its COVID-19 vaccine, mRNA-1273, during the second quarter amid the pandemic.
Moderna, Inc. Price and EPS Surprise
Moderna, Inc. price-eps-surprise | Moderna, Inc. Quote
Zoetis
The earnings surprise history has been excellent so far for Zoetis. It surpassed expectations in each of the trailing four quarters, delivering an earnings surprise of 21.35%, on average. In the last reported quarter, Zoetis delivered an earnings surprise of 21.15%.
Zoetis too is likely to report an earnings beat, as it currently has a Zacks Rank #3 and an Earnings ESP of +4.32%.
Strong sales from the dermatology portfolio might have maintained the momentum for the company in the second quarter. The company’s companion animal business has also been performing well, primarily owing to higher sales of the SimparicaTrio.
Zoetis Inc. Price and EPS Surprise
Zoetis Inc. price-eps-surprise | Zoetis Inc. Quote
Illumina
Illumina surpassed expectations in three of the trailing four quarters and missed in one, delivering an earnings surprise of 14.60%, on average. In the last reported quarter, it delivered an earnings surprise of 38.97%.
Illumina is likely to report an earnings beat, as it currently has a Zacks Rank #2 and an Earnings ESP of +2.36%.
Strength in its core business across all regions, with rise in both clinical and research customers, has likely fueled growth in the second quarter.
Illumina, Inc. Price and EPS Surprise
Illumina, Inc. price-eps-surprise | Illumina, Inc. Quote