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The company’s earnings surprise history has been dismal so far, with its earnings beating the Zacks Consensus Estimate in two of the trailing four quarters and missing on the other two occasions, the average negative surprise being 6.35%. In the last reported quarter, Incyte delivered an earnings miss of 3.51%.
Shares of Incyte have rallied 9.8% in the year so far against the industry’s decrease of 21.6%.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for the quarter to be reported.
Factors at Play
Incyte primarily derives product revenues from sales of its lead drug, Jakafi (ruxolitinib), in the United States, as well as its other marketed drugs.
Patient demand for Jakafi, a first-in-class JAK1/JAK2 inhibitor, in all approved indications (polycythemiavera, myelofibrosis and refractory acute graft-versus-host disease [GvHD]) increased sequentially in the first quarter. The trend is likely to have continued in the to-be-reported quarter as well.
Jakafi sales grew 17% year over year in the previous quarter, which is expected to have continued in the second quarter. The Zacks Consensus Estimate for Jakafi sales stands at $590 million.
Incyte also earns product royalty revenues from Novartis AG (NVS - Free Report) for the commercialization of Jakafi in ex-U.S. markets. Novartis licensed ruxolitinib from Incyte for development and commercialization outside the United States.
Incyte is likely to have received higher royalties from NVS in the second quarter. Jakafi is marketed by Incyte in the United States and is marketed as Jakavi by Novartis outside the country.
Incyte also receives royalties from sales of Tabrecta (capmatinib), which is approved for the treatment of adult patients with metastatic non-small cell lung cancer. Novartis has exclusive worldwide development and commercialization rights to Tabrecta.
While, Jakafi sales and royalties are key catalysts for the company’s revenue growthm, Iclusig sales and Olumiant royalties from Eli Lilly also contribute to the top line. Hence, these are likely to have aided the company’s revenues in the to-be-reported quarter.
Net product revenues of Iclusig were up slightly year over year in the previous quarter, and a similar trend is likely to have been witnessed by INCY in the to-be-reported quarter.
Olumiant’s product royalty revenues were up significantly due to an increase in net product sales as a result of the use of Olumiant for the treatment of COVID-19. Similar levels of growth are likely to have boosted the top line in the to-be-reported quarter.
Incremental sales from newly approved drugs are also likely to have added to sales in the second quarter. The adoption of other newly approved drugs like Monjuvi is also a positive and should boost sales in the upcoming quarters.
Operating expenses are likely to have increased due to a rise in R&D, selling, general and administrative expenses.
Key Pipeline Updates
In July 2022, the FDA approved Opzelura (ruxolitinib) cream for another indication. The regulatory body approved Opzelura cream 1.5% for the topical treatment of nonsegmental vitiligo in adult and pediatric patients 12 years of age and older.
In June 2022, the FDA approved Olumiant, a once-daily pill, as a first-in-disease systemic treatment for adults with severe alopecia areata (AA), available as 4-mg, 2-mg and 1-mg tablets.
In May 2022, the European Commission approved Jakavi for the treatment of patients with acute or chronic GVHD, who have an inadequate response to corticosteroids or other systemic therapies.
Following the nod, Jakavi became the first JAK1/2 inhibitor available for patients with GvHD in Europe.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Incyte this time around. 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. That is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP:Earnings ESP for Incyte is 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are currently pegged at 79 cents per share.
Here are a few stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Seagen Inc. has an Earnings ESP of +3.31% and a Zacks Rank #3.
Seagen stock has risen 11.8% this year so far. Seagen topped earnings estimates in two of the last four quarters. SGEN has a four-quarter earnings surprise of -40.08%, on average. SGEN is scheduled to release its second-quarter 2022 results on Jul 28.
BioNTech SE (BNTX - Free Report) has an Earnings ESP of +1.99% and a Zacks Rank #2.
BioNTech’s stock has plunged 37% year to date. BioNTech topped earnings estimates in all the last four quarters. BNTX has a four-quarter earnings surprise of 56.87%, on average. BNTX is scheduled to release its second-quarter 2022 results on Aug 8.
Image: Shutterstock
Incyte (INCY) to Report Q2 Earnings: What's in the Cards?
Incyte Corporation (INCY - Free Report) is scheduled to release its second-quarter 2022 results on Aug 2, before the market opens.
The company’s earnings surprise history has been dismal so far, with its earnings beating the Zacks Consensus Estimate in two of the trailing four quarters and missing on the other two occasions, the average negative surprise being 6.35%. In the last reported quarter, Incyte delivered an earnings miss of 3.51%.
Shares of Incyte have rallied 9.8% in the year so far against the industry’s decrease of 21.6%.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for the quarter to be reported.
Factors at Play
Incyte primarily derives product revenues from sales of its lead drug, Jakafi (ruxolitinib), in the United States, as well as its other marketed drugs.
Patient demand for Jakafi, a first-in-class JAK1/JAK2 inhibitor, in all approved indications (polycythemiavera, myelofibrosis and refractory acute graft-versus-host disease [GvHD]) increased sequentially in the first quarter. The trend is likely to have continued in the to-be-reported quarter as well.
Jakafi sales grew 17% year over year in the previous quarter, which is expected to have continued in the second quarter. The Zacks Consensus Estimate for Jakafi sales stands at $590 million.
Incyte also earns product royalty revenues from Novartis AG (NVS - Free Report) for the commercialization of Jakafi in ex-U.S. markets. Novartis licensed ruxolitinib from Incyte for development and commercialization outside the United States.
Incyte is likely to have received higher royalties from NVS in the second quarter. Jakafi is marketed by Incyte in the United States and is marketed as Jakavi by Novartis outside the country.
Incyte also receives royalties from sales of Tabrecta (capmatinib), which is approved for the treatment of adult patients with metastatic non-small cell lung cancer. Novartis has exclusive worldwide development and commercialization rights to Tabrecta.
While, Jakafi sales and royalties are key catalysts for the company’s revenue growthm, Iclusig sales and Olumiant royalties from Eli Lilly also contribute to the top line. Hence, these are likely to have aided the company’s revenues in the to-be-reported quarter.
Net product revenues of Iclusig were up slightly year over year in the previous quarter, and a similar trend is likely to have been witnessed by INCY in the to-be-reported quarter.
Olumiant’s product royalty revenues were up significantly due to an increase in net product sales as a result of the use of Olumiant for the treatment of COVID-19. Similar levels of growth are likely to have boosted the top line in the to-be-reported quarter.
Incremental sales from newly approved drugs are also likely to have added to sales in the second quarter. The adoption of other newly approved drugs like Monjuvi is also a positive and should boost sales in the upcoming quarters.
Operating expenses are likely to have increased due to a rise in R&D, selling, general and administrative expenses.
Key Pipeline Updates
In July 2022, the FDA approved Opzelura (ruxolitinib) cream for another indication. The regulatory body approved Opzelura cream 1.5% for the topical treatment of nonsegmental vitiligo in adult and pediatric patients 12 years of age and older.
In June 2022, the FDA approved Olumiant, a once-daily pill, as a first-in-disease systemic treatment for adults with severe alopecia areata (AA), available as 4-mg, 2-mg and 1-mg tablets.
In May 2022, the European Commission approved Jakavi for the treatment of patients with acute or chronic GVHD, who have an inadequate response to corticosteroids or other systemic therapies.
Following the nod, Jakavi became the first JAK1/2 inhibitor available for patients with GvHD in Europe.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Incyte this time around. 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. That is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP:Earnings ESP for Incyte is 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are currently pegged at 79 cents per share.
Zacks Rank: INCY currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Incyte Corporation Price and EPS Surprise
Incyte Corporation price-eps-surprise | Incyte Corporation Quote
Stocks to Consider
Here are a few stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Seagen Inc. has an Earnings ESP of +3.31% and a Zacks Rank #3.
Seagen stock has risen 11.8% this year so far. Seagen topped earnings estimates in two of the last four quarters. SGEN has a four-quarter earnings surprise of -40.08%, on average. SGEN is scheduled to release its second-quarter 2022 results on Jul 28.
BioNTech SE (BNTX - Free Report) has an Earnings ESP of +1.99% and a Zacks Rank #2.
BioNTech’s stock has plunged 37% year to date. BioNTech topped earnings estimates in all the last four quarters. BNTX has a four-quarter earnings surprise of 56.87%, on average. BNTX is scheduled to release its second-quarter 2022 results on Aug 8.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.