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Sanofi (SNY) to Report Q3 Earnings: What's in the Cards?
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Sanofi (SNY - Free Report) will report third-quarter 2022 results on Oct 28 before market open. In the last reported quarter, the company delivered an earnings surprise of 8.24%.
The large drugmaker’s performance beat earnings expectations in each of the trailing four quarters. The company delivered a four-quarter earnings surprise of 9.37%, on average.
Sanofi’s stock has declined 18.5% this year so far compared with a decrease of 1.5% for the industry.
Image Source: Zacks Investment Research
Factors to Consider
Sanofi’s top-line growth is likely to have been driven by higher sales of the Specialty Care business, mainly driven by its blockbuster drug Dupixent.
Dupixent sales in the quarter are likely to have been driven by continued growth in atopic dermatitis and continued uptake in asthma and chronic rhinosinusitis with nasal polyposis indications. Dupixent was approved for its fifth disease indication, prurigo nodularis, in September, though it is unlikely to have contributed much to third-quarter sales. Please note that Sanofi markets Dupixent in partnership with Regeneron (REGN - Free Report) . In addition to the currently approved indications, Sanofi and Regeneron are studying Dupixent in a broad range of diseases driven by type 2 inflammation or other allergic processes in late-stage studies. Our estimates for Dupixent stand at €2.24 billion.
Sales of Sanofi’s rare disease, rare blood disorders and oncology drugs are likely to have increased in the third quarter. Our estimates for rare disease, rare blood disorders and oncology drugs stand at €865.8 million, €330.1 million, and €220.2 million, respectively.
However, a slight decline is expected in sales of the immunology and neurology franchise in the third quarter. In the General Medicines unit, the growth of core drugs (like Multaq, Toujeo, Praluent and Rezurock) is likely to have been offset by lower sales of non-core drugs (like Lantus and Aprovel).
In Vaccines, higher sales of flu vaccines and a recovery in demand for travel and booster vaccines with the easing of pandemic-related travel restrictions are likely to have impacted the unit’s sales performance. Our estimates for Vaccines is €2.86 billion.
In CHC, a strong sales performance is expected in the Cough and Cold, Allergy, Digestive Wellness and Pain Care categories. Our estimates for the CHC unit is €1.28 billion
However, the company expects gross margins to be lower in the third and fourth quarters than the first half as underlying improvements are expected to be offset by macroeconomic headwinds such as increased cost of energy, transportation, as well as labor costs. The impact of VBP on insulins in China is also expected to have hurt gross margins.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Sanofi 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. But that is not the case here.
Earnings ESP: Sanofi’s Earnings ESP is 0.00% as the Zacks Consensus Estimate as well as the Most Accurate Estimate stand at $1.31 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Lilly’s stock has risen 26% this year so far. Lilly missed earnings estimates in three of the last four quarters. Lilly has a negative four-quarter earnings surprise of 5.11%, on average. LLY is scheduled to release its third-quarter 2022 results on Nov 1.
BioMarin Pharmaceutical (BMRN - Free Report) has an Earnings ESP of +10.77% and a Zacks Rank of 2.
BioMarin’s stock has risen 1.7% this year so far. 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.
Image: Bigstock
Sanofi (SNY) to Report Q3 Earnings: What's in the Cards?
Sanofi (SNY - Free Report) will report third-quarter 2022 results on Oct 28 before market open. In the last reported quarter, the company delivered an earnings surprise of 8.24%.
The large drugmaker’s performance beat earnings expectations in each of the trailing four quarters. The company delivered a four-quarter earnings surprise of 9.37%, on average.
Sanofi Price and EPS Surprise
Sanofi price-eps-surprise | Sanofi Quote
Sanofi’s stock has declined 18.5% this year so far compared with a decrease of 1.5% for the industry.
Image Source: Zacks Investment Research
Factors to Consider
Sanofi’s top-line growth is likely to have been driven by higher sales of the Specialty Care business, mainly driven by its blockbuster drug Dupixent.
Dupixent sales in the quarter are likely to have been driven by continued growth in atopic dermatitis and continued uptake in asthma and chronic rhinosinusitis with nasal polyposis indications. Dupixent was approved for its fifth disease indication, prurigo nodularis, in September, though it is unlikely to have contributed much to third-quarter sales. Please note that Sanofi markets Dupixent in partnership with Regeneron (REGN - Free Report) . In addition to the currently approved indications, Sanofi and Regeneron are studying Dupixent in a broad range of diseases driven by type 2 inflammation or other allergic processes in late-stage studies. Our estimates for Dupixent stand at €2.24 billion.
Sales of Sanofi’s rare disease, rare blood disorders and oncology drugs are likely to have increased in the third quarter. Our estimates for rare disease, rare blood disorders and oncology drugs stand at €865.8 million, €330.1 million, and €220.2 million, respectively.
However, a slight decline is expected in sales of the immunology and neurology franchise in the third quarter. In the General Medicines unit, the growth of core drugs (like Multaq, Toujeo, Praluent and Rezurock) is likely to have been offset by lower sales of non-core drugs (like Lantus and Aprovel).
In Vaccines, higher sales of flu vaccines and a recovery in demand for travel and booster vaccines with the easing of pandemic-related travel restrictions are likely to have impacted the unit’s sales performance. Our estimates for Vaccines is €2.86 billion.
In CHC, a strong sales performance is expected in the Cough and Cold, Allergy, Digestive Wellness and Pain Care categories. Our estimates for the CHC unit is €1.28 billion
However, the company expects gross margins to be lower in the third and fourth quarters than the first half as underlying improvements are expected to be offset by macroeconomic headwinds such as increased cost of energy, transportation, as well as labor costs. The impact of VBP on insulins in China is also expected to have hurt gross margins.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Sanofi 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. But that is not the case here.
Earnings ESP: Sanofi’s Earnings ESP is 0.00% as the Zacks Consensus Estimate as well as the Most Accurate Estimate stand at $1.31 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Sanofi has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some drug stocks that have the right combination of elements to beat on earnings this time around:
Eli Lilly (LLY - Free Report) has an Earnings ESP of +0.58% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lilly’s stock has risen 26% this year so far. Lilly missed earnings estimates in three of the last four quarters. Lilly has a negative four-quarter earnings surprise of 5.11%, on average. LLY is scheduled to release its third-quarter 2022 results on Nov 1.
BioMarin Pharmaceutical (BMRN - Free Report) has an Earnings ESP of +10.77% and a Zacks Rank of 2.
BioMarin’s stock has risen 1.7% this year so far. 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.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.