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Bayer (BAYRY) Earnings & Revenues Surpass Estimates in Q1
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Bayer AG (BAYRY - Free Report) reported first-quarter 2022 core earnings of 99 cents per American Depositary Receipt (ADR), which beat the Zacks Consensus Estimate of 78 cents. The company reported earnings of 78 cents per ADR in the year-ago quarter.
Total sales in the first quarter were $16.41 billion, up from $14.86 billion in the year-ago quarter. Sales also beat the Zacks Consensus Estimate of $15.00 billion.
Shares of Bayer have rallied 17.3% in the year so far compared with the industry’s growth of 2.5%.
Image Source: Zacks Investment Research
All growth rates mentioned below are on a year-over-year basis and after adjusting for currency and portfolio changes.
Quarter in Detail
Bayer started reporting under three segments from the fourth quarter of 2019 — Pharmaceuticals, Consumer Health and Crop Science.
In the first quarter of 2022, Crop Science sales were €8.44 billion, up 21.6% from the year-ago quarter, driven by substantial increase in volumes and prices. Herbicide sales jumped 59.8% as a result of volume gains in all regions. Sales remained flat year over year at Soybean Seed & Traits. Sales of Corn Seed & Traits improved year over year, driven by price gains in all regions, as well as volume gains.
Revenues in the Pharmaceuticals segment rose 2.6% year over year to €4.62 billion in the reported quarter, owing to higher sales of ophthalmology drug, Eylea, newly launched cancer drug, Nubeqa, and radiology business. Please note that Bayer’s HealthCare unit co-develops Eylea with Regeneron (REGN - Free Report) .
Eylea sales increased 13.9%, driven by strong growth as a result of high demand in Europe and China. Regeneron records net product sales of Eylea in the United States. Bayer records net product sales of Eylea outside the United States. REGN records its share of profits/losses in connection with sales of Eylea outside the United States.
However, oral anticoagulant, Xarelto, which Bayer co-develops with J&J (JNJ - Free Report) , witnessed a decline of 5% in sales.
J&J is facing patent challenges in the United States for Xarelto and some of its other drugs. Sales of Xarelto declined in the first quarter of 2022. JNJ is also working on Xarelto’s label expansion.
Consumer Health sales increased 17.2% year over year to €1.51 billion in the first quarter, primarily due to robust recovery from the COVID-19 pandemic across all regions. The business benefited from the launch of innovative products and continued high demand in Nutritionals, with its sales soaring 15.4%. The Allergy & Cold category also registered robust sales growth of 38.7%.
2022 Guidance
Bayer confirmed the guidance it had provided in March.
The company continues to expect to generate core earnings per share of €7 in 2022.
The company continues to expect to generate sales of €46 billion in 2022.
Bayer Aktiengesellschaft Price, Consensus and EPS Surprise
Image: Bigstock
Bayer (BAYRY) Earnings & Revenues Surpass Estimates in Q1
Bayer AG (BAYRY - Free Report) reported first-quarter 2022 core earnings of 99 cents per American Depositary Receipt (ADR), which beat the Zacks Consensus Estimate of 78 cents. The company reported earnings of 78 cents per ADR in the year-ago quarter.
Total sales in the first quarter were $16.41 billion, up from $14.86 billion in the year-ago quarter. Sales also beat the Zacks Consensus Estimate of $15.00 billion.
Shares of Bayer have rallied 17.3% in the year so far compared with the industry’s growth of 2.5%.
Image Source: Zacks Investment Research
All growth rates mentioned below are on a year-over-year basis and after adjusting for currency and portfolio changes.
Quarter in Detail
Bayer started reporting under three segments from the fourth quarter of 2019 — Pharmaceuticals, Consumer Health and Crop Science.
In the first quarter of 2022, Crop Science sales were €8.44 billion, up 21.6% from the year-ago quarter, driven by substantial increase in volumes and prices. Herbicide sales jumped 59.8% as a result of volume gains in all regions. Sales remained flat year over year at Soybean Seed & Traits. Sales of Corn Seed & Traits improved year over year, driven by price gains in all regions, as well as volume gains.
Revenues in the Pharmaceuticals segment rose 2.6% year over year to €4.62 billion in the reported quarter, owing to higher sales of ophthalmology drug, Eylea, newly launched cancer drug, Nubeqa, and radiology business. Please note that Bayer’s HealthCare unit co-develops Eylea with Regeneron (REGN - Free Report) .
Eylea sales increased 13.9%, driven by strong growth as a result of high demand in Europe and China. Regeneron records net product sales of Eylea in the United States. Bayer records net product sales of Eylea outside the United States. REGN records its share of profits/losses in connection with sales of Eylea outside the United States.
However, oral anticoagulant, Xarelto, which Bayer co-develops with J&J (JNJ - Free Report) , witnessed a decline of 5% in sales.
J&J is facing patent challenges in the United States for Xarelto and some of its other drugs. Sales of Xarelto declined in the first quarter of 2022. JNJ is also working on Xarelto’s label expansion.
Consumer Health sales increased 17.2% year over year to €1.51 billion in the first quarter, primarily due to robust recovery from the COVID-19 pandemic across all regions. The business benefited from the launch of innovative products and continued high demand in Nutritionals, with its sales soaring 15.4%. The Allergy & Cold category also registered robust sales growth of 38.7%.
2022 Guidance
Bayer confirmed the guidance it had provided in March.
The company continues to expect to generate core earnings per share of €7 in 2022.
The company continues to expect to generate sales of €46 billion in 2022.
Bayer Aktiengesellschaft Price, Consensus and EPS Surprise
Bayer Aktiengesellschaft price-consensus-eps-surprise-chart | Bayer Aktiengesellschaft Quote
Zacks Rank & Stock to Consider
Bayer currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the healthcare sector is Sarepta Therapeutics, Inc. (SRPT - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sarepta’s loss per share estimates have narrowed 6% for 2022 and 10.3% for 2023 over the past 60 days.
Earnings of Sarepta have surpassed estimates in each of the trailing four quarters. SRPT delivered an earnings surprise of 21.45% on average.