A month has gone by since the last earnings report for Incyte (INCY Quick QuoteINCY - Free Report) . Shares have added about 3.3% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Incyte due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Incyte's Q3 Earnings and Revenues Miss Estimates

Incyte’s earnings and revenues missed the Zacks Consensus Estimate in the third quarter of 2022. However, the company’s lead drug, Jakafi (ruxolitinib), continues to witness growth in patient demand.

The company reported adjusted earnings of 60 cents per share in the third quarter of 2022, missing the Zacks Consensus Estimate of 72 cents. It had reported earnings of $1.18 per share in the year-ago quarter.

Total revenues came in at $823.3 million in the third quarter of 2022, increasing 1.2% year over year. Sales also missed the Zacks Consensus Estimate of $847 million.

Quarter in Detail

Total product and royalty revenues came in at $823.3 million, up 6% from the year-ago quarter. Jakafi’s (a first-in-class JAK1/JAK2 inhibitor approved for polycythemiavera, myelofibrosis and refractory acute graft-versus-host disease) revenues came in at $619.5 million. The figure increased 13% from the year-ago quarter and surpassed the Zacks Consensus Estimate of $616 million.

Net product revenues of Iclusig amounted to $25.9 million, down 9% from the year-ago quarter.

Pemazyre generated $23.4 million in sales during the third quarter, reflecting an increase of 33% year over year.

The newly approved medicine, Opzelura (ruxolitinib) cream generated $38.1 million in sales during the third quarter.

In July 2022, the FDA approved Opzelura cream 1.5% for the topical treatment of nonsegmental vitiligo in adult and pediatric patients aged 12 years and older. Opzelura is also approved by the FDA for the topical short-term and non-continuous chronic treatment of mild to moderate atopic dermatitis.

Per the company, growth in Opzelura revenues during the third quarter of 2022 was largely driven by strong demand for both atopic dermatitis and vitiligo.

 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -23.84% due to these changes.

VGM Scores

Currently, Incyte has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Incyte has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Incyte is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, BioMarin Pharmaceutical (BMRN Quick QuoteBMRN - Free Report) , a stock from the same industry, has gained 20%. The company reported its results for the quarter ended September 2022 more than a month ago.

BioMarin reported revenues of $505.34 million in the last reported quarter, representing a year-over-year change of +23.6%. EPS of $0.45 for the same period compares with $0.18 a year ago.

For the current quarter, BioMarin is expected to post earnings of $0.34 per share, indicating a change of +1033.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -5.2% over the last 30 days.

BioMarin has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.