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Organon (OGN) to Report Q3 Earnings: What's in the Cards?
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Organon & Co. (OGN - Free Report) is scheduled to report third-quarter 2021 results on Nov 11, before market opens.
In June 2021, pharma giant Merck & Co., Inc. (MRK - Free Report) completed the spinoff of its Women’s Health unit, legacy drugs and biosimilar products into a new publicly traded company called Organon.
Let’s see how things are shaping up for the quarter to be reported.
Factors at Play
Organon records revenues under its three business franchisees — Women’s Health, Biosimilars and Established Brands.
In the last-reported quarter, Women’s Health sales reported a 19% year-over-year increase driven by strong growth in Nexplanon, a single-rod subdermal contraceptive implant. Growth in fertility also contributed to Women’s Health revenues in the last-reported quarter. This trend is likely to have continued in the third quarter as well.
In the last-reported quarter, revenues in the biosimilar franchise recorded a 43% year-over-year increase, driven by continued demand growth for Renflexis (infliximab-abda) and strong uptake of Ontruzant (trastuzumab-dttb) in the United States. This trend is likely to have continued in the third quarter as well.
However, Established Brands’ revenues were down 4% year-over-year owing to the loss of exclusivity of Zetia (ezetimibe) in Japan. This trend most likely continued in the to-be-reported quarter.
We expect management to provide more updates on the progress of the company’s all three business franchisees at the upcoming earnings call.
Operating expenses in the last-reported quarter surged substantially year over year, a trend that most likely continued in the to-be reported quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Organon this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Organon has an Earnings ESP of -4.38% as the Most Accurate Estimate currently stands at $1.38 per share while the Zacks Consensus Estimate is pegged at $1.44 per share.
Here are a few stocks you may want to consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Gemini Therapeutics, Inc. has an Earnings ESP of +17.61% and carries a Zacks Rank #2, currently.
Ascendis Pharma A/S (ASND - Free Report) has an Earnings ESP of +11.27% and carries a Zacks Rank #3 at present. The company is scheduled to report earnings on Nov 10.
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Organon (OGN) to Report Q3 Earnings: What's in the Cards?
Organon & Co. (OGN - Free Report) is scheduled to report third-quarter 2021 results on Nov 11, before market opens.
In June 2021, pharma giant Merck & Co., Inc. (MRK - Free Report) completed the spinoff of its Women’s Health unit, legacy drugs and biosimilar products into a new publicly traded company called Organon.
Let’s see how things are shaping up for the quarter to be reported.
Factors at Play
Organon records revenues under its three business franchisees — Women’s Health, Biosimilars and Established Brands.
In the last-reported quarter, Women’s Health sales reported a 19% year-over-year increase driven by strong growth in Nexplanon, a single-rod subdermal contraceptive implant. Growth in fertility also contributed to Women’s Health revenues in the last-reported quarter. This trend is likely to have continued in the third quarter as well.
In the last-reported quarter, revenues in the biosimilar franchise recorded a 43% year-over-year increase, driven by continued demand growth for Renflexis (infliximab-abda) and strong uptake of Ontruzant (trastuzumab-dttb) in the United States. This trend is likely to have continued in the third quarter as well.
However, Established Brands’ revenues were down 4% year-over-year owing to the loss of exclusivity of Zetia (ezetimibe) in Japan. This trend most likely continued in the to-be-reported quarter.
We expect management to provide more updates on the progress of the company’s all three business franchisees at the upcoming earnings call.
Operating expenses in the last-reported quarter surged substantially year over year, a trend that most likely continued in the to-be reported quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Organon this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Organon has an Earnings ESP of -4.38% as the Most Accurate Estimate currently stands at $1.38 per share while the Zacks Consensus Estimate is pegged at $1.44 per share.
Zacks Rank: Organon currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few stocks you may want to consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Gemini Therapeutics, Inc. has an Earnings ESP of +17.61% and carries a Zacks Rank #2, currently.
Ascendis Pharma A/S (ASND - Free Report) has an Earnings ESP of +11.27% and carries a Zacks Rank #3 at present. The company is scheduled to report earnings on Nov 10.