Quite a few pharma and biotech bigwigs reported results last week, with the earnings picture looking reasonably good. A number of biotechs are slated to report later in the week. Bellwether Johnson & Johnson and Swiss pharma giant Novartis reported strong results for the first quarter, beating earnings and sales estimates on the back of solid demand trends for their products. Among the biotechs, Amgen and Bristol Myers beat estimates for earnings but missed on sales. Biogen beat on both earnings and sales but the metrics declined year over year. Gilead Sciences reported lower-than-expected first-quarter results as a decline in Veklury (remdesivir) sales hurt its performance.
Per the Zacks classification, the pharma/biotech industry comes under the broader
Medical sector, which comprises pharma/biotech as well as medical device companies.
Earnings Trends report, as of Apr 26, 26.3% of the companies in the Medical sector, constituting nearly 40.5% of the sector’s market capitalization, reported earnings. While 86.7% beat earnings estimates, 100% beat the same for sales. Earnings increased 3.5% year over year on 9.4% higher revenues. Overall, first-quarter earnings of the Medical sector are expected to decline 21.1% on a 2.5% sales increase.
Let’s analyze five drug/biotech companies —
United Therapeutics Corporation ( UTHR Quick Quote UTHR - Free Report) , Pacira BioSciences, Inc. ( PCRX Quick Quote PCRX - Free Report) , Corcept Therapeutics Incorporated ( CORT Quick Quote CORT - Free Report) , Amarin Corporation plc ( AMRN Quick Quote AMRN - Free Report) and Ionis Pharmaceuticals, Inc. ( IONS Quick Quote IONS - Free Report) — that are set to report first-quarter 2023 results on May 3. United Therapeutics
It has a mixed track record, having beaten earnings estimates in two of the trailing four quarters and missing in the remaining two, delivering an average earnings surprise of 7.86%. In the last reported quarter, it missed earnings expectations by 35.19%. The company currently has an
Earnings ESP of +6.78% and a Zacks Rank #4 (Sell).
Per our proven model, stocks 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.
Demand for United Therapeutics’ treprostinil medicines, Remodulin, Tyvaso and Orenitram, has been strong but generic competition and competition are likely to have posed challenges in the quarter. The Zacks Consensus Estimate for first-quarter earnings per share is $4.26.
Pacira’s earnings surprise history has been dismal so far, with its earnings missing the Zacks Consensus Estimate in three of the trailing four quarters and coming in line in the remaining one, with the average negative surprise being 15.72%. In the last reported quarter, Pacira’s earnings met the consensus estimate.
For the quarter to be reported, Pacira has an Earnings ESP of 0.00% and a Zacks Rank #2. You can
the complete list of today’s Zacks #1 Rank stocks here.
Pacira’s lead drug Exparel’s performance has been strong and the recent label expansion is likely to have boosted revenues.
It has a weak track record with its earnings missing the Zacks Consensus Estimate in three of the trailing four quarters and beating in the remaining one, with the average negative surprise being 6.44%.
For the quarter to be reported, Corcept has an Earnings ESP of -3.28% and Zacks Rank #3.
Corcept’s sole marketed drug, Korlym, approved for treating Cushing’s syndrome, has seen strong uptake and has likely performed well in the first quarter as well.
The company has a mixed track record, with its earnings beating the Zacks Consensus Estimate in two of the trailing four quarters and missing in the remaining two, with the average negative surprise being 14.29%. In the last reported quarter, Amarin beat earnings by 100%.
For the quarter to be reported, Amarin has an Earnings ESP of +100.00% and Zacks Rank #3.
While Amarin’s lead drug, Vascepa is facing rising generic competition for its severe hypertriglyceridemia indication in the United States, it has been progressing well with the launch of the drug in other international markets.
It has a decent track record, with earnings beating the Zacks Consensus Estimate in three of the trailing four quarters and missing in the remaining one, with the average surprise being 32.89%. In the last reported quarter, Ionis beat earnings by 65.09%.
For the quarter to be reported, Ionis has an Earnings ESP of -5.26% and Zacks Rank #3.
Ionis enjoys diverse revenue streams, which include commercial products and royalties as well as numerous sources of collaborative and R&D revenues.
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