We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 Biotech Stocks Set to Outpace Q3 Earnings Estimates
Read MoreHide Full Article
The third-quarter 2022 reporting cycle of the Medical sector has just started. The sector primarily comprises pharma/biotech and medical device companies.
The Earnings Trends report indicates that as of Oct 19, 8.9% of the companies in the Medical sector — representing 29.8% of the sector’s market capitalization — reported quarterly earnings. While 100% of participants beat on revenues, 80% outperformed on earnings. Earnings and revenues increased 3.8% and 8.9% year over year, respectively. Overall, third-quarter earnings of the Medical sector are expected to fall 7.6%, while sales are expected to rise 3.8%.
The earnings season for the Medical sector kicked off this week when pharma giants J&J and Roche reported earnings results. While J&J’s earnings and sales beat estimates on both counts, it lowered its sales expectations for 2022 due to currency headwinds. Sales of Roche declined 6% year over year due to lower COVID-19-related sales in the Pharmaceuticals and Diagnostics divisions.
Zeroing in on Winners
Here we have highlighted four pharma/biotech companies — Eli Lilly (LLY - Free Report) , Genmab (GMAB - Free Report) , BioMarin Pharmaceutical (BMRN - Free Report) and argenx (ARGX - Free Report) — that are expected to deliver a beat in their upcoming quarterly results.
Earnings ESP is our proprietary methodology for determining the stocks with the best chance to deliver an earnings surprise. Earnings ESP shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.
According to the Zacks model, 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. The selection can be made with the help of the Zacks Stock Screener.
Our research shows that for stocks with this combination, the chance of an earnings surprise is as high as 70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
4 Biotech/Pharma Stocks That Match the Criteria
Eli Lilly
A large-cap pharma giant, Eli Lilly’s revenue growth is being driven by higher demand for key drugs, including Trulicity, Taltz, Verzenio, Jardiance, Olumiant and Emgality, which are likely to have supported the top line. Eli Lilly has an Earnings ESP of +0.58% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter earnings stands at $1.91 per share.
Lilly missed earnings estimates in three of the last four quarters while beating the mark on one occasion. Lilly has a trailing four-quarter negative earnings surprise of 5.11%, on average. LLY is scheduled to release its third-quarter 2022 results on Nov 1, before the market opens.
This biotechnology company makes antibody therapies targeting oncology indications. Genmab has an Earnings ESP of +18.10% and a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter earnings stands at 23 cents per share.
Genmab beat estimates in each of the last four quarters, delivering an average earnings surprise of 56.73%.
A commercial-stage biotech, BioMarin focuses on developing treatments for serious life-threatening medical conditions, mostly for children. BioMarin has an Earnings ESP of +10.77% and a Zacks Rank of 2. The Zacks Consensus Estimate for BioMarin’s third-quarter earnings is pegged at 36 cents per share.
BioMarin beat estimates in each of the last four quarters, delivering an earnings surprise of 98.90%. BioMarin is set to report earnings on Oct 26 after the closing bell.
A biopharmaceutical company, argenx is focused on developing novel antibody-based medicines targeting severe autoimmune diseases. argenx has an Earnings ESP of +11.27% and a Zacks Rank of 3. The Zacks Consensus Estimate for the third quarter is pegged at a loss of $3.52 per share. argenx is scheduled to release results on Oct 27 before the opening bell.
argenx beat estimates in each of the last four quarters, with the average surprise being 9.55%
Image: Bigstock
4 Biotech Stocks Set to Outpace Q3 Earnings Estimates
The third-quarter 2022 reporting cycle of the Medical sector has just started. The sector primarily comprises pharma/biotech and medical device companies.
The Earnings Trends report indicates that as of Oct 19, 8.9% of the companies in the Medical sector — representing 29.8% of the sector’s market capitalization — reported quarterly earnings. While 100% of participants beat on revenues, 80% outperformed on earnings. Earnings and revenues increased 3.8% and 8.9% year over year, respectively. Overall, third-quarter earnings of the Medical sector are expected to fall 7.6%, while sales are expected to rise 3.8%.
The earnings season for the Medical sector kicked off this week when pharma giants J&J and Roche reported earnings results. While J&J’s earnings and sales beat estimates on both counts, it lowered its sales expectations for 2022 due to currency headwinds. Sales of Roche declined 6% year over year due to lower COVID-19-related sales in the Pharmaceuticals and Diagnostics divisions.
Zeroing in on Winners
Here we have highlighted four pharma/biotech companies — Eli Lilly (LLY - Free Report) , Genmab (GMAB - Free Report) , BioMarin Pharmaceutical (BMRN - Free Report) and argenx (ARGX - Free Report) — that are expected to deliver a beat in their upcoming quarterly results.
Earnings ESP is our proprietary methodology for determining the stocks with the best chance to deliver an earnings surprise. Earnings ESP shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.
According to the Zacks model, 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. The selection can be made with the help of the Zacks Stock Screener.
Our research shows that for stocks with this combination, the chance of an earnings surprise is as high as 70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
4 Biotech/Pharma Stocks That Match the Criteria
Eli Lilly
A large-cap pharma giant, Eli Lilly’s revenue growth is being driven by higher demand for key drugs, including Trulicity, Taltz, Verzenio, Jardiance, Olumiant and Emgality, which are likely to have supported the top line. Eli Lilly has an Earnings ESP of +0.58% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter earnings stands at $1.91 per share.
Lilly missed earnings estimates in three of the last four quarters while beating the mark on one occasion. Lilly has a trailing four-quarter negative earnings surprise of 5.11%, on average. LLY is scheduled to release its third-quarter 2022 results on Nov 1, before the market opens.
Eli Lilly and Company Price and Consensus
Eli Lilly and Company price-consensus-chart | Eli Lilly and Company Quote
You can see the complete list of today’s Zacks #1 Rank stocks here.
Genmab A/S
This biotechnology company makes antibody therapies targeting oncology indications. Genmab has an Earnings ESP of +18.10% and a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter earnings stands at 23 cents per share.
Genmab beat estimates in each of the last four quarters, delivering an average earnings surprise of 56.73%.
Genmab AS Sponsored ADR Price and Consensus
Genmab AS Sponsored ADR price-consensus-chart | Genmab AS Sponsored ADR Quote
BioMarin Pharmaceutical
A commercial-stage biotech, BioMarin focuses on developing treatments for serious life-threatening medical conditions, mostly for children. BioMarin has an Earnings ESP of +10.77% and a Zacks Rank of 2. The Zacks Consensus Estimate for BioMarin’s third-quarter earnings is pegged at 36 cents per share.
BioMarin beat estimates in each of the last four quarters, delivering an earnings surprise of 98.90%. BioMarin is set to report earnings on Oct 26 after the closing bell.
BioMarin Pharmaceutical Inc. Price and Consensus
BioMarin Pharmaceutical Inc. price-consensus-chart | BioMarin Pharmaceutical Inc. Quote
argenx
A biopharmaceutical company, argenx is focused on developing novel antibody-based medicines targeting severe autoimmune diseases. argenx has an Earnings ESP of +11.27% and a Zacks Rank of 3. The Zacks Consensus Estimate for the third quarter is pegged at a loss of $3.52 per share. argenx is scheduled to release results on Oct 27 before the opening bell.
argenx beat estimates in each of the last four quarters, with the average surprise being 9.55%
argenex SE Price and Consensus
argenex SE price-consensus-chart | argenex SE Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.