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Drug, Biotech Stocks' Q2 Earnings on Jul 28: MRK, PFE & More
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The earnings season for the pharma sector began last week when bigwig Johnson & Johnson reported second-quarter results, followed by a few large pharma/drug/biotech stocks, which announced respective quarterly results.
Per the Zacks classification, the pharma/biotech industry comes under the broader Medical sector, which comprises pharma/biotech and generic companies as well as medical device companies.
As of Jul 20, the Earnings Trends report confirms that 8.9% of the Medical sector participants, constituting nearly 29% of the sector’s market capitalization, already reported earnings. While 100% of the companies beat on earnings, 100% surpassed on revenues as well. Earnings increased 10.4% year over year, while revenues rose 11.2%.
Overall, second-quarter earnings of the Medical sector are expected to rise 1.5%, while sales are projected to increase 8.1%.
Let's see how things have shaped up for Merck & Co., Inc. (MRK - Free Report) , Pfizer Inc. (PFE - Free Report) , Sanofi (SNY - Free Report) , Alnylam Pharmaceuticals, Inc. (ALNY - Free Report) and Seagen Inc. in the second quarter. These companies will report earnings on Jul 28:
Merck
Merck’s performance exceeded earnings expectations in three of the trailing four quarters and missed the same in one. MRK delivered a trailing four-quarter earnings surprise of 13.42%, on average.
Merck’s Earnings ESP is +0.76% as the Zacks Consensus Estimate stands at $1.67 per share and the Most Accurate Estimate stands at $1.69.
Our proven model does not conclusively predict an earnings beat for Merck this time around. The combination of a positive Earnings ESP and a Zacks Rank #1, 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here, as shown below.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Our previous article showed that Merck did not have the favorable combination to beat on earnings this reporting cycle. However, estimates changed thereafter and an earnings surprise looks possible now.
Merck’s revenues in the second quarter are likely to have been driven by strong demand for its cancer drugs, as was the trend in several previous quarters.
In oncology drugs, Keytruda sales are likely to have been driven by continued strong momentum in lung cancer indications and a constant uptake in other indications. The Zacks Consensus Estimate for Keytruda’s sales is $5 billion.
In the hospital specialty portfolio, higher demand on recovery in surgical procedures might have benefited the sales of Bridion Injection. With regard to the HPV vaccine Gardasil, ex-U.S. sales are expected to have been driven by strong demand in China and an increased supply in the second quarter.
Merck’s Animal Health franchise should continue to see strong sales growth.
The drug giant’s performance was mixed with the company exceeding earnings expectations in three of the last four quarters while missing the mark in one. PFE has a trailing four-quarter earnings surprise of 14.76%, on average.
Our proven model does not conclusively predict an earnings beat for Pfizer this time around. PFE’s Earnings ESP is +2.19% as the Zacks Consensus Estimate stands at $1.72 per share and the Most Accurate Estimate stands at $1.75. PFE has a Zacks Rank of 3.
Our previous article showed that Pfizer did not have the favorable combination to beat on earnings this reporting cycle. However, estimates changed thereafter and an earnings surprise looks possible now.
Key contributors to Pfizer’s sales in the second quarter are likely to have been direct sales and alliance revenues from its partner BioNTech for the COVID-19 vaccine Comirnaty and its in-house oral antiviral COVID pill Paxlovid.
Higher alliance revenues from Pfizer’s key brand Eliquis, better sales of Prevnar vaccines and Inlyta cancer drug, a significant contribution from newer drug Vyndaqel/Vyndamax and improved biosimilar revenues are likely to have driven sales in the second quarter of 2022.
Sales of some key drugs like Xeljanz, Sutent and Enbrel in the international markets are likely to have declined in the second quarter, continuing the trend of the last few quarters.
Sanofi’searnings surpassed estimates in each of the trailing four quarters, the average being 8.57%. In the last reported quarter, SNY delivered an earnings surprise of 15.96%.
Our proven model does not predict an earnings beat for Sanofi this season. SNY has anEarnings ESP of 0.00% and a Zacks Rank #4 (Sell), currently. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings stands at 85 cents.
Sanofi’s revenues in the second quarter are likely to have been boosted by the sales of its blockbuster eczema medicine Dupixent, which generated sales of €1.61 billion in the first quarter, up 45.7% year over year.
Sanofi also possesses a leading vaccine portfolio, which is likely to have bolstered its sales in the second quarter of 2022.
Sales of rare disease and oncology drugs are also likely to have led to top-line growth in the second quarter.
Alnylam’s earnings missed estimates in each of the trailing four quarters, witnessing a negative surprise of 16.76%, on average. In the last reported quarter, ALNY delivered a negative earnings surprise of 3.63%.
Our proven model predicts an earnings beat for Alnylam this reporting cycle. ALNY has an Earnings ESP of +13.58% and is Zacks #3 Ranked, currently. The Zacks Consensus Estimate for its to-be-reported quarter’s earnings stands at a loss of $1.62.
Alnylam’s revenues in the second quarter are likely to have been driven by the sales of its lead drug Onpattro, which is approved for treating polyneuropathy of hereditary transthyretin-mediated (hATTR) amyloidosis.
Sales of Givlaari and Oxlumo also increased year over year in the last reported quarter, a trend that most likely continued in the second quarter as well.
Alnylam Pharmaceuticals, Inc. Price and EPS Surprise
Seagen’s earnings beat estimates in two of the trailing four quarters and missed the same on the other two occasions, witnessing a negative surprise of 40.08%, on average. In the last reported quarter, SGEN delivered an earnings surprise of 24.49%.
Our proven model predicts an earnings beat for Seagen this time around. SGEN has an Earnings ESP of +0.24% and a Zacks Rank #3, currently. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings stands at a loss of 82 cents.
Seagen’s revenues in the second quarter are likely to have been driven by the sale of its portfolio of marketed drugs, such as Adcetris, Padcev, Tukysa and the newly approved Tivdak. All these products target different types of cancer indications.
Lead drug Adcetris’ sales grew year over year in the last reported quarter, a trend that most likely continued in the second quarter too.
Padcev and Tukysa sales were also up year over year in the last reported quarter, a trend that most likely continued in the second quarter as well.
Sale of the newly-launched Tivdak surged sequentially in the first quarter, a trend that most likely continued in the second quarter too.
Revenues from collaboration and license agreement, and royalty revenues are likely to have contributed to Seagen’s top line in the June quarter.
Image: Bigstock
Drug, Biotech Stocks' Q2 Earnings on Jul 28: MRK, PFE & More
The earnings season for the pharma sector began last week when bigwig Johnson & Johnson reported second-quarter results, followed by a few large pharma/drug/biotech stocks, which announced respective quarterly results.
Per the Zacks classification, the pharma/biotech industry comes under the broader Medical sector, which comprises pharma/biotech and generic companies as well as medical device companies.
As of Jul 20, the Earnings Trends report confirms that 8.9% of the Medical sector participants, constituting nearly 29% of the sector’s market capitalization, already reported earnings. While 100% of the companies beat on earnings, 100% surpassed on revenues as well. Earnings increased 10.4% year over year, while revenues rose 11.2%.
Overall, second-quarter earnings of the Medical sector are expected to rise 1.5%, while sales are projected to increase 8.1%.
Let's see how things have shaped up for Merck & Co., Inc. (MRK - Free Report) , Pfizer Inc. (PFE - Free Report) , Sanofi (SNY - Free Report) , Alnylam Pharmaceuticals, Inc. (ALNY - Free Report) and Seagen Inc. in the second quarter. These companies will report earnings on Jul 28:
Merck
Merck’s performance exceeded earnings expectations in three of the trailing four quarters and missed the same in one. MRK delivered a trailing four-quarter earnings surprise of 13.42%, on average.
Merck’s Earnings ESP is +0.76% as the Zacks Consensus Estimate stands at $1.67 per share and the Most Accurate Estimate stands at $1.69.
MRK has a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our proven model does not conclusively predict an earnings beat for Merck this time around. The combination of a positive Earnings ESP and a Zacks Rank #1, 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here, as shown below.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Our previous article showed that Merck did not have the favorable combination to beat on earnings this reporting cycle. However, estimates changed thereafter and an earnings surprise looks possible now.
Merck’s revenues in the second quarter are likely to have been driven by strong demand for its cancer drugs, as was the trend in several previous quarters.
In oncology drugs, Keytruda sales are likely to have been driven by continued strong momentum in lung cancer indications and a constant uptake in other indications. The Zacks Consensus Estimate for Keytruda’s sales is $5 billion.
In the hospital specialty portfolio, higher demand on recovery in surgical procedures might have benefited the sales of Bridion Injection. With regard to the HPV vaccine Gardasil, ex-U.S. sales are expected to have been driven by strong demand in China and an increased supply in the second quarter.
Merck’s Animal Health franchise should continue to see strong sales growth.
Merck & Co., Inc. Price and EPS Surprise
Merck & Co., Inc. price-eps-surprise | Merck & Co., Inc. Quote
Pfizer
The drug giant’s performance was mixed with the company exceeding earnings expectations in three of the last four quarters while missing the mark in one. PFE has a trailing four-quarter earnings surprise of 14.76%, on average.
Our proven model does not conclusively predict an earnings beat for Pfizer this time around. PFE’s Earnings ESP is +2.19% as the Zacks Consensus Estimate stands at $1.72 per share and the Most Accurate Estimate stands at $1.75. PFE has a Zacks Rank of 3.
Our previous article showed that Pfizer did not have the favorable combination to beat on earnings this reporting cycle. However, estimates changed thereafter and an earnings surprise looks possible now.
Key contributors to Pfizer’s sales in the second quarter are likely to have been direct sales and alliance revenues from its partner BioNTech for the COVID-19 vaccine Comirnaty and its in-house oral antiviral COVID pill Paxlovid.
Higher alliance revenues from Pfizer’s key brand Eliquis, better sales of Prevnar vaccines and Inlyta cancer drug, a significant contribution from newer drug Vyndaqel/Vyndamax and improved biosimilar revenues are likely to have driven sales in the second quarter of 2022.
Sales of some key drugs like Xeljanz, Sutent and Enbrel in the international markets are likely to have declined in the second quarter, continuing the trend of the last few quarters.
Pfizer Inc. Price and EPS Surprise
Pfizer Inc. price-eps-surprise | Pfizer Inc. Quote
Sanofi
Sanofi’searnings surpassed estimates in each of the trailing four quarters, the average being 8.57%. In the last reported quarter, SNY delivered an earnings surprise of 15.96%.
Our proven model does not predict an earnings beat for Sanofi this season. SNY has anEarnings ESP of 0.00% and a Zacks Rank #4 (Sell), currently. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings stands at 85 cents.
Sanofi’s revenues in the second quarter are likely to have been boosted by the sales of its blockbuster eczema medicine Dupixent, which generated sales of €1.61 billion in the first quarter, up 45.7% year over year.
Sanofi also possesses a leading vaccine portfolio, which is likely to have bolstered its sales in the second quarter of 2022.
Sales of rare disease and oncology drugs are also likely to have led to top-line growth in the second quarter.
Sanofi Price and EPS Surprise
Sanofi price-eps-surprise | Sanofi Quote
Alnylam Pharmaceuticals
Alnylam’s earnings missed estimates in each of the trailing four quarters, witnessing a negative surprise of 16.76%, on average. In the last reported quarter, ALNY delivered a negative earnings surprise of 3.63%.
Our proven model predicts an earnings beat for Alnylam this reporting cycle. ALNY has an Earnings ESP of +13.58% and is Zacks #3 Ranked, currently. The Zacks Consensus Estimate for its to-be-reported quarter’s earnings stands at a loss of $1.62.
Alnylam’s revenues in the second quarter are likely to have been driven by the sales of its lead drug Onpattro, which is approved for treating polyneuropathy of hereditary transthyretin-mediated (hATTR) amyloidosis.
Sales of Givlaari and Oxlumo also increased year over year in the last reported quarter, a trend that most likely continued in the second quarter as well.
Alnylam Pharmaceuticals, Inc. Price and EPS Surprise
Alnylam Pharmaceuticals, Inc. price-eps-surprise | Alnylam Pharmaceuticals, Inc. Quote
Seagen
Seagen’s earnings beat estimates in two of the trailing four quarters and missed the same on the other two occasions, witnessing a negative surprise of 40.08%, on average. In the last reported quarter, SGEN delivered an earnings surprise of 24.49%.
Our proven model predicts an earnings beat for Seagen this time around. SGEN has an Earnings ESP of +0.24% and a Zacks Rank #3, currently. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings stands at a loss of 82 cents.
Seagen’s revenues in the second quarter are likely to have been driven by the sale of its portfolio of marketed drugs, such as Adcetris, Padcev, Tukysa and the newly approved Tivdak. All these products target different types of cancer indications.
Lead drug Adcetris’ sales grew year over year in the last reported quarter, a trend that most likely continued in the second quarter too.
Padcev and Tukysa sales were also up year over year in the last reported quarter, a trend that most likely continued in the second quarter as well.
Sale of the newly-launched Tivdak surged sequentially in the first quarter, a trend that most likely continued in the second quarter too.
Revenues from collaboration and license agreement, and royalty revenues are likely to have contributed to Seagen’s top line in the June quarter.
Seagen Inc. Price and EPS Surprise
Seagen Inc. price-eps-surprise | Seagen Inc. Quote
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