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Drug/Biotech Stocks' Q4 Earnings on Feb 23: BMRN, BHC & More

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As we approach the fag end of the earnings season, several pharma, drug and biotech companies, which belong to the broader Medical sector, have already reported their quarterly results. Overall, results of the Medical sector have been 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.

Per the Earnings Trends report, as of Feb 16, 80.4% of the companies in the Medical sector, constituting nearly 91.5% of the sector’s market capitalization, have reported earnings. The proportion of companies that beat earnings and sales estimates was 71.1%. Earnings increased 18.5% year over year on 12.7% higher revenues.

Overall, fourth-quarter earnings of the Medical sector are expected to rise 25.8% on a 13.9% sales increase, suggesting that the recovery of the Medical sector is likely to have continued till the end of the fourth quarter.

Let's see how things have shaped up for Bausch Health Companies Inc. (BHC - Free Report) , BioMarin Pharmaceutical Inc. (BMRN - Free Report) , Theravance Biopharma, Inc. (TBPH - Free Report) , Clovis Oncology, Inc. (CLVS - Free Report) and Global Blood Therapeutics, Inc. (GBT - Free Report) in the fourth quarter. These companies will report earnings on Feb 23.

According to the Zacks model, a company needs the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Let’s analyze the performances of the above-mentioned five drug/biotech companies set to report earnings results on Feb 23:

Bausch Health Companies Inc.

Bausch conducts business in the following reportable segments: (i) Bausch + Lomb (ii) Salix (iii) International Rx (iv) Ortho Dermatologics and (v) Diversified Products. Leading brands of the company performed well in the last-reported quarter, and the momentum is likely to have continued in the fourth quarter.

Revenues from International Rx, Ortho Dermatologics and the Diversified Products segments declined on a yearly basis in the last-reported quarter. It remains to be seen whether the trend continued in the fourth quarter.

In the last-reported quarter, the company’s earnings beat estimates by 6.54%. Bausch’s earnings track record has been excellent so far. The company beat earnings estimates in each of the last four quarters, the average surprise being 9.51%.

Bausch currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings ESP for Bausch is -2.78%. The Zacks Consensus Estimate is $1.08 per share.

Bausch Health Cos Inc. Price and EPS Surprise

Bausch Health Cos Inc. Price and EPS Surprise

Bausch Health Cos Inc. price-eps-surprise | Bausch Health Cos Inc. Quote

BioMarin Pharmaceutical Inc.

BioMarin’s top line comprise of sales from its marketed drugs. Approval of Voxzogo, a potential blockbuster drug, in 2021, opens up a key sales opportunity as well. Sales of BioMarin's marketed brands (excluding Aldurazyme) decreased year over year in the last-reported quarter, a trend that most likely continued in the to-be-reported quarter. However, Brineura and Palynziq sales increased on yearly basis in the last-reported quarter, and this trend is also likely to have continued in the fourth quarter.

The company’s performance has been excellent so far, with its earnings beating estimates in each of the trailing four quarters, delivering an earnings surprise of 59.71%, on average. In the last-reported quarter, BioMarin’s earnings beat estimates by 63.64%.

For the quarter to be reported, BioMarin has an Earnings ESP of 0.00% as the Zacks Consensus Estimate is pegged at a loss of 2 cents per share. BioMarin has a Zacks Rank #3.

Theravance Biopharma, Inc.

Theravance earns profit-sharing revenues from Viatris for the development and marketing of Yupelri, its nebulized therapy for chronic obstructive pulmonary disease. However, collaboration revenues were down year over year in the last-reported quarter, a trend that most likely continued in the to-be-reported quarter.

The company’s performance has been mixed so far, with its earnings beating estimates in three of the last four quarters while missing the same in one. The company has delivered a four-quarter earnings surprise of 7.31%, on average. In the last-reported quarter, the company’s earnings beat estimates by 20.00%.

Earnings ESP for Theravance is -11.49%. This is because the Zacks Consensus Estimate stands at a loss of 30 cents per share. Theravance currently carries a Zacks Rank #2 (Buy).

Theravance Biopharma, Inc. Price and EPS Surprise

Theravance Biopharma, Inc. Price and EPS Surprise

Theravance Biopharma, Inc. price-eps-surprise | Theravance Biopharma, Inc. Quote

Clovis Oncology, Inc.

Clovis has only one marketed drug in its portfolio, Rubraca, a PARP inhibitor approved for several cancer indications. Adoption of Rubraca has been slow in the United States, and as a result, net revenues were down on a yearly basis in the last-reported quarter, a trend that most likely continued in the to-be-reported quarter. However, Rubraca sales grew year over year in ex-U.S. markets, with the momentum likely to have continued in the fourth quarter.

The company’s performance has been mixed so far, with its earnings beating estimates in two of the last four quarters while missing the same on the other two occasions. The company has delivered a four-quarter negative earnings surprise of 2.49%, on average. In the last-reported quarter, the company’s earnings missed estimates by 16.67%.

Earnings ESP for Clovis is +44.69%. This is because the Zacks Consensus Estimate stands at a loss of 60 cents per share. Clovis currently carries a Zacks Rank #4 (Sell).

Clovis Oncology, Inc. Price and EPS Surprise

Clovis Oncology, Inc. Price and EPS Surprise

Clovis Oncology, Inc. price-eps-surprise | Clovis Oncology, Inc. Quote

Global Blood Therapeutics, Inc.

Global Blood's only marketed drug, Oxbryta, is approved in the United States for treating sickle cell disease (“SCD”). The drug is performing well since its launch, with sales increasing on yearly basis in the last-reported quarter, a trend that most likely continued in the fourth quarter. The drug also made a significant progress on new prescriptions. Earlier this month, Oxbryta was approved in Europe for treating SCD, which is likely to boost sales in 2022 and beyond.

Global Blood's performance has been dismal so far, with its earnings beating estimates in one of the last four quarters while missing the same on the other three occasions. The company has delivered a four-quarter negative earnings surprise of 5.05%, on average. In the last-reported quarter, the company’s earnings missed estimates by 2.73%.

Our proven model predicts an earnings beat for Global Blood in the to-be-reported quarter. Global Blood's Earnings ESP is +12.18% and the Zacks Consensus Estimate stands at a loss of $1.14. Global Blood has a Zacks Rank #3 currently.

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