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Drug/Biotech Stock Q4 Earnings Due Feb 8: PFE, INCY & DCPH

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It has been an interesting earnings season for the Medical sector so far. The sector mainly comprises pharma/biotech and medical device companies.

Per the Earnings Trends report, as of Feb 2, 33.9% of the companies in the Medical sector — which represent nearly 53.7% of the sector’s market capitalization — have reported their quarterly earnings. While 63.2% beat earnings estimates, 57.9% beat the same for revenues. Earnings and revenues increased 10% and 12.1% year over year, respectively. Overall, fourth-quarter earnings and sales of the Medical sector are expected to rise 18.4% and 12.8% year over year, respectively.

With quite a large number of pharma and biotech bigwigs having already reported results, the earnings picture is looking reasonably well. Last week, a number of big pharma and biotech companies reported solid earnings for the fourth quarter. Merck (MRK - Free Report) beat estimates on both counts, driven by additional sales of oral COVID-19 drug molnupiravir. Similar to Merck, Biogen, Novo Nordisk and Regeneron also beat on both earnings and sales. Roche also boasted a solid sales performance for 2021, which was primarily driven by strong demand for COVID-19 tests and recovery in pharma sales.

With regard to other pharma/biotech companies, Pfizer (PFE - Free Report) , Incyte (INCY - Free Report) and Deciphera Pharmaceuticals (DCPH - Free Report) are scheduled to release Q4 earnings on Feb 8.

Let’s analyze the performance of the above three biotech/pharma companies.

Pfizer

Pfizer, which has a decent earnings track record so far, is scheduled to report quarterly results before market open.

Pfizer beat earnings estimates in three of the last four quarters and missed in one, with the average surprise being 10.9%. In the last reported quarter, PFE beat earnings estimates by 24.1%.

Per our proven model, 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Our model predicts an earnings beat for Pfizer this time around. For the quarter to be reported, Pfizer has an Earnings ESP of +1.18% and a Zacks Rank #1 (Strong Buy).

The Zacks Consensus Estimate for earnings stands at 85 cents per share. You can see the complete list of today’s Zacks #1 Rank stocks here.

A key contributor to Pfizer’s fourth-quarter sales is likely to have been its partner BioNTech’s COVID-19 vaccine, Comirnaty. We expect sales to be higher than third-quarter sales of $13.0 billion.

Pfizer Inc. Price and EPS Surprise

Pfizer Inc. Price and EPS Surprise

Pfizer Inc. price-eps-surprise | Pfizer Inc. Quote

Incyte

Incyte, which has an impressive earnings track record so far, is also scheduled to report quarterly results before market open.

Incyte beat earnings estimates in each of the trailing four quarters, with the average being 20.7%. In the last reported quarter, the company’s earnings beat estimates by 55.3%.

Incyte has an Earnings ESP of -11.98% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for earnings stands at 84 cents per share.

Jakafi sales and royalties are likely to have been key catalysts for Incyte’s revenue growth. Iclusig sales and Olumiant royalties from Eli Lilly may have also contributed to the top line. The trend is most likely to have continued in the to-be-reported quarter.

Incyte Corporation Price and EPS Surprise

Incyte Corporation Price and EPS Surprise

Incyte Corporation price-eps-surprise | Incyte Corporation Quote

Deciphera Pharmaceuticals

Deciphera Pharmaceuticals, which has a mixed earnings track record so far, is scheduled to report quarterly results after the closing bell.

Deciphera beat earnings estimates in two of the trailing four quarters and missed the mark on the other two occasions, with the average negative surprise being 1.1%. In the last reported quarter, the company’s earnings missed estimates by 6.2%.

Deciphera has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for earnings stands at a loss of $1.49 per share.

Qinlock, Deciphera’s sole marketed drug, received approval for use in the European Union last November. We expect this approval to have contributed to DCPH’s top line in the quarter.

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