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Drug/Biotech Stocks Q1 Earnings Due on May 5: VRTX, ZTS & More

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The first-quarter 2022 reporting cycle of the Medical sector is currently in full swing. The sector mainly comprises pharma/biotech and medical device companies.

With a large number of pharma and biotech bigwigs having already reported results, the earnings picture looks reasonably well. Earlier this week, pharma giant Pfizer announced first-quarter results. While PFE missed on both earnings and sales, management maintained its previously issued sales guidance for 2022. Biogen reported mixed March-quarter results. While BIIB’s sales beat estimates, its earnings missed the mark, reflecting theimpact of the write-off of its Alzheimer’s disease drug, Aduhelm inventory.

The Earnings Trends report indicates that as of Apr 20, 7% of the companies in the Medical sector — representing 27.6% of the sector’s market capitalization — reported quarterly earnings. While 100% participants beat on earnings, 75% outperforms on revenues. Earnings and revenues increased 8.4% and 13.5% year over year, respectively. Overall, first-quarter earnings and sales of the Medical sector are expected to rise 10.3% and 13.3% each from the year-ago quarter’s respective reported figures.

Vertex Pharmaceuticals (VRTX - Free Report) , Zoetis (ZTS - Free Report) , Vir Biotechnology (VIR - Free Report) , Intellia Therapeutics (NTLA - Free Report) and Endo International (ENDP - Free Report) are scheduled to release first-quarter earnings on May 5.

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

Vertex Pharmaceuticals

Vertex Pharmaceuticals, which has an impressive earnings track record so far, is scheduled to report quarterly results, after market close.

VRTX’s earnings beat estimates in each of the last four quarters, the average being 10%. In the last reported quarter, Vertex’s earnings beat estimates by 2.7%.

Our proven model indicates that 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.

For the quarter to be reported, Vertex has an Earnings ESP of +0.87% and a Zacks Rank #2, implying a likely earnings surprise. The Zacks Consensus Estimate for earnings stands at $3.60 per share. You can see the complete list of today’s Zacks #1 Rank stocks here.

Revenue growth in the first quarter is expected to be driven by a rapid uptake of Vertex’s newest cystic fibrosis (CF) medicine Trikafta/Kaftrio (Trikafta’s brand name in Europe), thus continuing the trend seen in the last few quarters.

Zoetis

Zoetis, which has an encouraging earnings track record to date, is scheduled to report quarterly results, before market open.

ZTS’ earnings beat estimates in each of the last four quarters, the average being 12.3%. In the last reported quarter, Zoetis’ earnings beat estimates by 4.2%.

Zoetis Inc. Price and EPS Surprise

Zoetis Inc. Price and EPS Surprise

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

For the quarter to be reported, Zoetis has an Earnings ESP of +0.30% and a Zacks Rank of 3,indicating a likely earnings surprise. The Zacks Consensus Estimate for earnings stands at $1.22 per share.

Strong sales of the dermatology portfolio owing to increased sales of Apoquel and Cytopoint brands strengthened the United States segment in the last reported quarter, a trend that most likely continued in the first quarter as well. ZTS’ companion animal business has also been performing well for a while, primarily owing to higher sales of Simparica Trio, a triple combination parasiticide for dogs.

Vir Biotechnology

Vir Biotechnology with a decent earnings track record so far is scheduled to report quarterly results, after the closing bell.

VIR’s earnings beat estimates in three of the trailing four quarters and missed the mark on one occasion, the average surprise being 29.5%. In the last reported quarter, Vir Biotechnology’s earnings beat estimates by 50.8%.

Vir Biotechnology, Inc. Price and EPS Surprise

Vir Biotechnology, Inc. Price and EPS Surprise

Vir Biotechnology, Inc. price-eps-surprise | Vir Biotechnology, Inc. Quote

For the quarter to be reported, Vir Biotechnology has an Earnings ESP of -52.65% and a Zacks Rank #5 (Strong Sell). The Zacks Consensus Estimate for earnings stands at $3.21 per share.

A key contributor to Vir’s sales in the first quarter is likely to have been collaboration revenues from its profit-sharing arrangement with GlaxoSmithKline for the sale of Xevudy (sotrovimab) to treat COVID-19 infections.

Intellia Therapeutics

Intellia Therapeutics with a dismal earnings track record so far is scheduled to report quarterly results, before the opening bell.

NTLA’s earnings missed estimates in each of the trailing four quarters, the average negative surprise being 26%. In the last reported quarter, Intellia Therapeutics’ earnings missed estimates by 19.8%.

For the quarter to be reported, Intellia Therapeutics has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate is pegged at a loss of $1.11 per share.

With no marketable products in its portfolio, we expect an update on Intellia’s pipeline during the Q1 conference call, especially on its lead programs, namely NTLA-2001 (for transthyretin amyloidosis) and NTLA-2002 (for hereditary angioedema).

Endo International

Endo International, which has an impressive earnings track record so far, is scheduled to report quarterly results, after market close.

ENDP’s earnings beat estimates in each of the last four quarters, the average being 50.2%. In the last reported quarter, Endo International’s earnings beat estimates by 20%.

Endo International plc Price and EPS Surprise

Endo International plc Price and EPS Surprise

Endo International plc price-eps-surprise | Endo International plc Quote

For the quarter to be reported, Endo International has an Earnings ESP of +11.36% and is Zacks #3 Ranked, indicating a likely earnings surprise. The Zacks Consensus Estimate for earnings stands at 44 cents per share.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.