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.
Drug, Biotech Stocks' Q4 Earnings on Feb 28: NVAX, IOVA & More
Read MoreHide Full Article
The earnings season for the drug/biotech sector is now in its final stretch, with some smaller companies due to report their fourth-quarter results.
As far as the large drugmakers in the drug/biotech sector are concerned, it was a mixed earnings season for them, with most companies beating estimates for earnings but missing the same for sales. Most large drugmakers issued conservative guidance for 2023.
Per the Zacks classification, the pharma/biotech industry comes under the broader Medical sector, which comprises pharma/biotech as well as medical device companies.
As of Feb 22, per the Earnings Trends report, 87.5% of the Medical sector participants, constituting 97.1% of the sector’s market capitalization, have already reported earnings. While 73.5% of the companies beat on earnings, 71.4% surpassed on revenues. Earnings decreased 1.3% year over year, while revenues rose 5.5%.
Overall, fourth-quarter earnings of the Medical sector are expected to decline 6.4%, while sales are projected to increase 4.8%.
This biotech’s surprise record has been dismal so far, as its earnings missed expectations in each of the last four quarters. It has a trailing four-quarter negative earnings surprise of 280.19%, on average. In the last reported quarter, Novavax’s earnings missed estimates by 197.29%.
Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) have a good chance of delivering an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Novavax has an Earnings ESP of -11.96% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for earnings stands at 92 cents per share.
Novavax’s top line is likely to have been aided by sales of its COVID-19 vaccine in the fourth quarter. Novavax is also advancing the clinical development of its Omicron-based COVID vaccine.
Iovance Biotherapeutics
This pharmaceutical company has a mixed track record, having missed earnings in two of the past four quarters while beating in two. In the last reported quarter, it beat earnings expectations by 1.56%. It missed earnings estimates by 1.64%, on average, in the last four quarters.
Iovance Biotherapeutics, Inc. Price and EPS Surprise
Iovance Biotherapeutics has an Earnings ESP of +8.35% and a Zacks Rank #3. The Zacks Consensus Estimate for stands at a loss of 64 cents share.
Allogene Therapeutics
Allogene’s surprise history is strong, with earnings beating estimates in all the trailing four quarters. The average earnings surprise is 9.44%. In the last reported quarter, the company’s earnings beat estimates by 6.45%.
Allogene Therapeutics, Inc. Price and EPS Surprise
Allogene has an Earnings ESP of 0.00% and a Zacks Rank #2. The Zacks Consensus Estimate stands at a loss of 71 cents per share.
Sarepta Therapeutics
Sarepta’s surprise history has been mixed, having missed earnings in two of the past four quarters while beating in two. The four-quarter average negative surprise is 68.39%. In the last reported quarter, the company delivered a negative earnings surprise of 142.98%.
Sarepta has an Earnings ESP of -13.71% and has a Zacks Rank #3. The Zacks Consensus Estimate for stands at a loss of $1.28 per share.
Fate Therapeutics
Fate Therapeutics’ surprise history has been mixed, having missed earnings in one of the past four quarters while beating in three. The four-quarter average earnings surprise is 5.65%. In the last reported quarter, the company delivered an earnings surprise of 7.53%.
Image: Bigstock
Drug, Biotech Stocks' Q4 Earnings on Feb 28: NVAX, IOVA & More
The earnings season for the drug/biotech sector is now in its final stretch, with some smaller companies due to report their fourth-quarter results.
As far as the large drugmakers in the drug/biotech sector are concerned, it was a mixed earnings season for them, with most companies beating estimates for earnings but missing the same for sales. Most large drugmakers issued conservative guidance for 2023.
Per the Zacks classification, the pharma/biotech industry comes under the broader Medical sector, which comprises pharma/biotech as well as medical device companies.
As of Feb 22, per the Earnings Trends report, 87.5% of the Medical sector participants, constituting 97.1% of the sector’s market capitalization, have already reported earnings. While 73.5% of the companies beat on earnings, 71.4% surpassed on revenues. Earnings decreased 1.3% year over year, while revenues rose 5.5%.
Overall, fourth-quarter earnings of the Medical sector are expected to decline 6.4%, while sales are projected to increase 4.8%.
Here we discuss five companies, Novavax (NVAX - Free Report) , Iovance Biotherapeutics (IOVA - Free Report) , Allogene Therapeutics (ALLO - Free Report) , Sarepta Therapeutics (SRPT - Free Report) and Fate Therapeutics (FATE - Free Report) , which are set to report fourth-quarter results on Feb 28.
Novavax
This biotech’s surprise record has been dismal so far, as its earnings missed expectations in each of the last four quarters. It has a trailing four-quarter negative earnings surprise of 280.19%, on average. In the last reported quarter, Novavax’s earnings missed estimates by 197.29%.
Novavax, Inc. Price and EPS Surprise
Novavax, Inc. price-eps-surprise | Novavax, Inc. Quote
Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) have a good chance of delivering an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Novavax has an Earnings ESP of -11.96% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for earnings stands at 92 cents per share.
Novavax’s top line is likely to have been aided by sales of its COVID-19 vaccine in the fourth quarter. Novavax is also advancing the clinical development of its Omicron-based COVID vaccine.
Iovance Biotherapeutics
This pharmaceutical company has a mixed track record, having missed earnings in two of the past four quarters while beating in two. In the last reported quarter, it beat earnings expectations by 1.56%. It missed earnings estimates by 1.64%, on average, in the last four quarters.
Iovance Biotherapeutics, Inc. Price and EPS Surprise
Iovance Biotherapeutics, Inc. price-eps-surprise | Iovance Biotherapeutics, Inc. Quote
Iovance Biotherapeutics has an Earnings ESP of +8.35% and a Zacks Rank #3. The Zacks Consensus Estimate for stands at a loss of 64 cents share.
Allogene Therapeutics
Allogene’s surprise history is strong, with earnings beating estimates in all the trailing four quarters. The average earnings surprise is 9.44%. In the last reported quarter, the company’s earnings beat estimates by 6.45%.
Allogene Therapeutics, Inc. Price and EPS Surprise
Allogene Therapeutics, Inc. price-eps-surprise | Allogene Therapeutics, Inc. Quote
Allogene has an Earnings ESP of 0.00% and a Zacks Rank #2. The Zacks Consensus Estimate stands at a loss of 71 cents per share.
Sarepta Therapeutics
Sarepta’s surprise history has been mixed, having missed earnings in two of the past four quarters while beating in two. The four-quarter average negative surprise is 68.39%. In the last reported quarter, the company delivered a negative earnings surprise of 142.98%.
Sarepta Therapeutics, Inc. Price and EPS Surprise
Sarepta Therapeutics, Inc. price-eps-surprise | Sarepta Therapeutics, Inc. Quote
Sarepta has an Earnings ESP of -13.71% and has a Zacks Rank #3. The Zacks Consensus Estimate for stands at a loss of $1.28 per share.
Fate Therapeutics
Fate Therapeutics’ surprise history has been mixed, having missed earnings in one of the past four quarters while beating in three. The four-quarter average earnings surprise is 5.65%. In the last reported quarter, the company delivered an earnings surprise of 7.53%.
Fate Therapeutics, Inc. Price and EPS Surprise
Fate Therapeutics, Inc. price-eps-surprise | Fate Therapeutics, Inc. Quote
Fate Therapeutics has an Earnings ESP of 0.00% and a Zacks Rank #2. The Zacks Consensus Estimate stands at a loss of 86 cents per share.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.