We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Drug/Biotech Stocks Earnings on Feb 3: BIIB, LLY & MRK
Read MoreHide Full Article
A few large pharma/drug/biotech companies have already reported their fourth-quarter 2021 results. Johnson & Johnson (JNJ - Free Report) has reported its fourth-quarter results while big biotech, Vertex Pharmaceuticals, announced the same last week. The generic drugmaker, Dr. Reddy's Laboratories, reported its third-quarter fiscal 2022 results last week.
J&J's earnings surpassed the Zacks Consensus Estimate while its sales missed the same. Vertex's earnings and sales beat estimates for the fourth quarter of 2021. Dr. Reddy's revenues and earnings improved year over year.
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 Jan 26, 8.9% of the companies in the Medical sector, constituting nearly 29.2% of the sector’s market capitalization, have reported earnings. While 80% beat earnings estimates, 60% beat the same for revenues. Earnings increased 27% year over year on 12.2% higher revenues.
Overall, fourth-quarter earnings of the Medical sector are expected to rise 18.4% on a 12.2% sales increase.
The earnings layout looks favorable for the three drug/biotech companies — Biogen Inc. (BIIB - Free Report) , Eli Lilly and Company (LLY - Free Report) and Merck & Co., Inc. (MRK - Free Report) — set to release quarterly results tomorrow.
Let’s analyze these three drug/biotech companies that are set to report earnings results on Feb 3.
Biogen Inc.
The drug giant’s performance has been mixed, with the company exceeding earnings expectations in three of the last four quarters while missing the same in one. The company has delivered a four-quarter earnings surprise of 9.42%, on average.
Our proven model predicts an earnings beat for Biogen in the to-be-reported quarter. According to the model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely positive surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Biogen’s Earnings ESP is +0.35% as the Most Accurate Estimate of $3.35 is higher than the Zacks Consensus Estimate of $3.33. Biogen has a Zacks Rank #3 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Biogen’s sales in the fourth quarter are likely to have been hurt by lower sales of Tecfidera and Spinraza. The company’s multiple sclerosis (“MS”) revenues, excluding Ocrevus royalties, have been declining since the past few quarters. It is unlikely that MS sales will have improved in the fourth quarter. Also, sales of the new Alzheimer’s drug, Aduhelm, are likely to have been slow due to limited patient access.
Eli Lilly’s performance has been dismal, with earnings missing expectations in three of the trailing four quarters while beating the same in one. The company delivered a four-quarter earnings surprise of 0.54%, on average.
Eli Lilly has an Earnings ESP of +0.20% and a Zacks Rank #2, indicating a likely earnings beat. The Zacks Consensus Estimate for earnings stands at $2.51 per share.
Higher demand and volume growth for Eli Lilly’s key drugs, including Trulicity, Taltz, Verzenio, Jardiance, Olumiant and Emgality, are likely to have driven the top line in the fourth quarter. In December 2021, Lilly raised its previously issued 2021 sales and earnings projections due to additional expected revenues from its COVID-19 antibody medicines.
The large drugmaker’s performance has also been rather weak, with the company missing earnings expectations in three of the trailing four quarters while beating the same in one. The company delivered a four-quarter negative earnings surprise of 1.23%, on average.
Our proven model predicts an earnings beat for Merck in the to-be-reported quarter. Merck’s Earnings ESP is +9.03% as the Most Accurate Estimate of $1.54 is higher than the Zacks Consensus Estimate of $1.41. Merck currently carries a Zacks Rank #3.
Strong demand for cancer drugs like Keytruda is likely to have boosted Merck’s sales growth in the fourth quarter. Merck’s vaccine portfolio is witnessing continued recovery due to the return to a more normal level of wellness visits. However, the impact of high infection rates (due to the Omicron variant) on sales trends of some drugs remains to be seen.
Image: Bigstock
Drug/Biotech Stocks Earnings on Feb 3: BIIB, LLY & MRK
A few large pharma/drug/biotech companies have already reported their fourth-quarter 2021 results. Johnson & Johnson (JNJ - Free Report) has reported its fourth-quarter results while big biotech, Vertex Pharmaceuticals, announced the same last week. The generic drugmaker, Dr. Reddy's Laboratories, reported its third-quarter fiscal 2022 results last week.
J&J's earnings surpassed the Zacks Consensus Estimate while its sales missed the same. Vertex's earnings and sales beat estimates for the fourth quarter of 2021. Dr. Reddy's revenues and earnings improved year over year.
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 Jan 26, 8.9% of the companies in the Medical sector, constituting nearly 29.2% of the sector’s market capitalization, have reported earnings. While 80% beat earnings estimates, 60% beat the same for revenues. Earnings increased 27% year over year on 12.2% higher revenues.
Overall, fourth-quarter earnings of the Medical sector are expected to rise 18.4% on a 12.2% sales increase.
The earnings layout looks favorable for the three drug/biotech companies — Biogen Inc. (BIIB - Free Report) , Eli Lilly and Company (LLY - Free Report) and Merck & Co., Inc. (MRK - Free Report) — set to release quarterly results tomorrow.
Let’s analyze these three drug/biotech companies that are set to report earnings results on Feb 3.
Biogen Inc.
The drug giant’s performance has been mixed, with the company exceeding earnings expectations in three of the last four quarters while missing the same in one. The company has delivered a four-quarter earnings surprise of 9.42%, on average.
Our proven model predicts an earnings beat for Biogen in the to-be-reported quarter. According to the model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely positive surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Biogen’s Earnings ESP is +0.35% as the Most Accurate Estimate of $3.35 is higher than the Zacks Consensus Estimate of $3.33. Biogen has a Zacks Rank #3 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Biogen’s sales in the fourth quarter are likely to have been hurt by lower sales of Tecfidera and Spinraza. The company’s multiple sclerosis (“MS”) revenues, excluding Ocrevus royalties, have been declining since the past few quarters. It is unlikely that MS sales will have improved in the fourth quarter. Also, sales of the new Alzheimer’s drug, Aduhelm, are likely to have been slow due to limited patient access.
Biogen Inc. Price and EPS Surprise
Biogen Inc. price-eps-surprise | Biogen Inc. Quote
Eli Lilly and Company
Eli Lilly’s performance has been dismal, with earnings missing expectations in three of the trailing four quarters while beating the same in one. The company delivered a four-quarter earnings surprise of 0.54%, on average.
Eli Lilly has an Earnings ESP of +0.20% and a Zacks Rank #2, indicating a likely earnings beat. The Zacks Consensus Estimate for earnings stands at $2.51 per share.
Higher demand and volume growth for Eli Lilly’s key drugs, including Trulicity, Taltz, Verzenio, Jardiance, Olumiant and Emgality, are likely to have driven the top line in the fourth quarter. In December 2021, Lilly raised its previously issued 2021 sales and earnings projections due to additional expected revenues from its COVID-19 antibody medicines.
Eli Lilly and Company Price and EPS Surprise
Eli Lilly and Company price-eps-surprise | Eli Lilly and Company Quote
Merck & Co., Inc.
The large drugmaker’s performance has also been rather weak, with the company missing earnings expectations in three of the trailing four quarters while beating the same in one. The company delivered a four-quarter negative earnings surprise of 1.23%, on average.
Our proven model predicts an earnings beat for Merck in the to-be-reported quarter. Merck’s Earnings ESP is +9.03% as the Most Accurate Estimate of $1.54 is higher than the Zacks Consensus Estimate of $1.41. Merck currently carries a Zacks Rank #3.
Strong demand for cancer drugs like Keytruda is likely to have boosted Merck’s sales growth in the fourth quarter. Merck’s vaccine portfolio is witnessing continued recovery due to the return to a more normal level of wellness visits. However, the impact of high infection rates (due to the Omicron variant) on sales trends of some drugs remains to be seen.
Merck & Co., Inc. Price and EPS Surprise
Merck & Co., Inc. price-eps-surprise | Merck & Co., Inc. Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.