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Drug, Biotech Stocks' Q2 Earnings on Aug 2: GILD, INCY & More
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The earnings season for the pharma sector began when bigwig Johnson & Johnson reported second-quarter results on July 19, followed by a line-up of several large pharma/drug/biotech stocks. Overall, results were better than expected for most large drugmakers with an optimistic outlook for the second half.
Pfizer, Merck and Sanofi beat on both earnings and sales. While Merck, AstraZeneca and Glaxo raised their sales guidance for the year, Sanofi upped its earnings growth expectations.
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 27, the Earnings Trends report confirms that 25% of the Medical sector participants, constituting 41.2% of the sector’s market capitalization, already reported earnings. While 85.7% of the companies beat on earnings, 78.6% surpassed on revenues. Earnings increased 5.1% year over year, while revenues rose 10.7%.
Overall, second-quarter earnings of the Medical sector are expected to rise 1.1%, while revenues are projected to increase 7.9%.
Let's see how things have shaped up for Gilead Sciences, Inc. (GILD - Free Report) , Incyte Corporation (INCY - Free Report) , Sarepta Therapeutics, Inc. (SRPT - Free Report) and Blueprint Medicines Corporation (BPMC - Free Report) for the second-quarter earnings announcement, slated for Aug 2.
Gilead
Gilead has an encouraging surprise record, with earnings beating estimates in three of the last four quarters and missing the same in one, the average beat being 6.30%. In the last reported quarter, GILD beat expectations by 19.77%.
Our proven model predicts an earnings beat for Gilead 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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Gilead’s revenues in the second quarter are likely to have been driven by the sales of its HIV franchiseowing to higher demand for the flagship HIV therapy Biktarvy and favorable pricing dynamics.
Sales from the cell therapy product, including Yescarta (axicabtagene ciloleucel) and Tecartus (brexucabtagene autoleucel), are also likely to have witnessed a sequential increase, driven by label expansions of Yescarta and Tecartus.
Incyte’s surprise history has been dismal so far, with its earnings beating the Zacks Consensus Estimate in two of the trailing four quarters and missing the mark on the other two occasions, the average negative surprise being 6.35%. In the last reported quarter, INCY witnessed an earnings miss of 3.51%.
Our proven model does not conclusively predict an earnings beat for Incyte this time around. INCY has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate stand at 79 cents per share. INCY currently has a Zacks Rank of 3.
Incyte’s revenues in the second quarter are likely to have been driven by the sales of itslead drug Jakafi (ruxolitinib), a first-in-class JAK1/JAK2 inhibitor, for all approved indications (polycythemiavera, myelofibrosis and refractory acute graft-versus-host disease [GvHD]).
Sales for Jakafiare expected to have continued in the second quarter owing to high patient demand.
Incyte also earns product royalty revenues from Novartis AG (NVS - Free Report) for the commercialization of Jakafi in the ex-U.S. markets.
Incyte is likely to have received higher royalties from NVS in the second quarter. Jakafi is marketed by INCY in the United States and by Novartis outside the country.
Incyte also earns royalties from Eli Lilly on Olumiant sales, which were up significantly owing to higher net product sales on the use of Olumiant for the treatment of COVID-19 in the last reported quarter. Similar levels of growth are likely to have boosted the top line in the second quarter.
Sarepta’s surprise history has been excellent so far, with its earnings beating the Zacks Consensus Estimate in each of the trailing four quarters, the average being 21.45%. In the last reported quarter, SRPT delivered an earnings surprise of 11.11%.
Our proven model does not conclusively predict an earnings beat for Sarepta this time around. SRPT’s Earnings ESP is -10.46% as the Zacks Consensus Estimate currently stands at a loss of $1.07 and the Most Accurate Estimate is pegged at a loss of $1.18 per share. SRPT presently has a Zacks Rank of 3.
Sarepta’s revenues in the second quarter are likely to have been driven by the sales of its three marketed drugs, namely Exondys 51, Vyondys 53 and Amondys 45, which are approved for treating Duchenne muscular dystrophy (DMD).
Sarepta earns collaboration revenues, primarily from its licensing agreement with Roche, which were flat year over year in the last reported quarter, a trend we expect to have continued in the to-be-reported quarter as well.
Blueprint Medicines’ surprise record has been disappointing so far, with its earnings missing the Zacks Consensus Estimate in three of the trailing four quarters and meeting the same once, the average negative surprise being 15.72%. In the last reported quarter, BPMC’s earnings surprise was in line.
Our proven model predicts an earnings beat for Blueprint Medicines this time around. BPMC’s Earnings ESP is +0.69% as the Zacks Consensus Estimate currently stands at a loss of $2.23, while the Most Accurate Estimate stands at a loss of $2.22 per share. BPMC has a Zacks Rank #3 at present.
Blueprint Medicines’ revenues in the second quarter are likely to have been driven by the sales of its lead drug Ayvakit (avapritinib), which is approved for treating of adult patients with metastatic gastrointestinal stromal tumors. The drug is also approved for treating advanced systemic mastocytosis.
Ayvakit’s sales witnessed a steady uptake, a trend that most likely continued in the second quarter too.
Activities related to the pipeline development and the commercialization of Ayvakit/Ayvakyt (brand name of Ayvakit in Europe) are likely to have escalated BPMC’s operating expenses in the to-be-reported quarter.
Blueprint Medicines Corporation Price and EPS Surprise
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Drug, Biotech Stocks' Q2 Earnings on Aug 2: GILD, INCY & More
The earnings season for the pharma sector began when bigwig Johnson & Johnson reported second-quarter results on July 19, followed by a line-up of several large pharma/drug/biotech stocks. Overall, results were better than expected for most large drugmakers with an optimistic outlook for the second half.
Pfizer, Merck and Sanofi beat on both earnings and sales. While Merck, AstraZeneca and Glaxo raised their sales guidance for the year, Sanofi upped its earnings growth expectations.
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 27, the Earnings Trends report confirms that 25% of the Medical sector participants, constituting 41.2% of the sector’s market capitalization, already reported earnings. While 85.7% of the companies beat on earnings, 78.6% surpassed on revenues. Earnings increased 5.1% year over year, while revenues rose 10.7%.
Overall, second-quarter earnings of the Medical sector are expected to rise 1.1%, while revenues are projected to increase 7.9%.
Let's see how things have shaped up for Gilead Sciences, Inc. (GILD - Free Report) , Incyte Corporation (INCY - Free Report) , Sarepta Therapeutics, Inc. (SRPT - Free Report) and Blueprint Medicines Corporation (BPMC - Free Report) for the second-quarter earnings announcement, slated for Aug 2.
Gilead
Gilead has an encouraging surprise record, with earnings beating estimates in three of the last four quarters and missing the same in one, the average beat being 6.30%. In the last reported quarter, GILD beat expectations by 19.77%.
Gilead has an Earnings ESP is +0.17% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate stands at $1.51 per share.
Our proven model predicts an earnings beat for Gilead 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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Gilead’s revenues in the second quarter are likely to have been driven by the sales of its HIV franchiseowing to higher demand for the flagship HIV therapy Biktarvy and favorable pricing dynamics.
Sales from the cell therapy product, including Yescarta (axicabtagene ciloleucel) and Tecartus (brexucabtagene autoleucel), are also likely to have witnessed a sequential increase, driven by label expansions of Yescarta and Tecartus.
Gilead Sciences, Inc. Price and EPS Surprise
Gilead Sciences, Inc. price-eps-surprise | Gilead Sciences, Inc. Quote
Incyte
Incyte’s surprise history has been dismal so far, with its earnings beating the Zacks Consensus Estimate in two of the trailing four quarters and missing the mark on the other two occasions, the average negative surprise being 6.35%. In the last reported quarter, INCY witnessed an earnings miss of 3.51%.
Our proven model does not conclusively predict an earnings beat for Incyte this time around. INCY has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate stand at 79 cents per share. INCY currently has a Zacks Rank of 3.
Incyte’s revenues in the second quarter are likely to have been driven by the sales of itslead drug Jakafi (ruxolitinib), a first-in-class JAK1/JAK2 inhibitor, for all approved indications (polycythemiavera, myelofibrosis and refractory acute graft-versus-host disease [GvHD]).
Sales for Jakafiare expected to have continued in the second quarter owing to high patient demand.
Incyte also earns product royalty revenues from Novartis AG (NVS - Free Report) for the commercialization of Jakafi in the ex-U.S. markets.
Incyte is likely to have received higher royalties from NVS in the second quarter. Jakafi is marketed by INCY in the United States and by Novartis outside the country.
Incyte also earns royalties from Eli Lilly on Olumiant sales, which were up significantly owing to higher net product sales on the use of Olumiant for the treatment of COVID-19 in the last reported quarter. Similar levels of growth are likely to have boosted the top line in the second quarter.
Incyte Corporation Price and EPS Surprise
Incyte Corporation price-eps-surprise | Incyte Corporation Quote
Sarepta
Sarepta’s surprise history has been excellent so far, with its earnings beating the Zacks Consensus Estimate in each of the trailing four quarters, the average being 21.45%. In the last reported quarter, SRPT delivered an earnings surprise of 11.11%.
Our proven model does not conclusively predict an earnings beat for Sarepta this time around. SRPT’s Earnings ESP is -10.46% as the Zacks Consensus Estimate currently stands at a loss of $1.07 and the Most Accurate Estimate is pegged at a loss of $1.18 per share. SRPT presently has a Zacks Rank of 3.
Sarepta’s revenues in the second quarter are likely to have been driven by the sales of its three marketed drugs, namely Exondys 51, Vyondys 53 and Amondys 45, which are approved for treating Duchenne muscular dystrophy (DMD).
Sarepta earns collaboration revenues, primarily from its licensing agreement with Roche, which were flat year over year in the last reported quarter, a trend we expect to have continued in the to-be-reported quarter as well.
Sarepta Therapeutics, Inc. Price and EPS Surprise
Sarepta Therapeutics, Inc. price-eps-surprise | Sarepta Therapeutics, Inc. Quote
Blueprint Medicines
Blueprint Medicines’ surprise record has been disappointing so far, with its earnings missing the Zacks Consensus Estimate in three of the trailing four quarters and meeting the same once, the average negative surprise being 15.72%. In the last reported quarter, BPMC’s earnings surprise was in line.
Our proven model predicts an earnings beat for Blueprint Medicines this time around. BPMC’s Earnings ESP is +0.69% as the Zacks Consensus Estimate currently stands at a loss of $2.23, while the Most Accurate Estimate stands at a loss of $2.22 per share. BPMC has a Zacks Rank #3 at present.
Blueprint Medicines’ revenues in the second quarter are likely to have been driven by the sales of its lead drug Ayvakit (avapritinib), which is approved for treating of adult patients with metastatic gastrointestinal stromal tumors. The drug is also approved for treating advanced systemic mastocytosis.
Ayvakit’s sales witnessed a steady uptake, a trend that most likely continued in the second quarter too.
Activities related to the pipeline development and the commercialization of Ayvakit/Ayvakyt (brand name of Ayvakit in Europe) are likely to have escalated BPMC’s operating expenses in the to-be-reported quarter.
Blueprint Medicines Corporation Price and EPS Surprise
Blueprint Medicines Corporation price-eps-surprise | Blueprint Medicines Corporation Quote
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