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5 Biotech Stocks Likely to Outpace Q4 Earnings Estimates
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It has been a rather lukewarm earnings season for the drug and biotech sector. Majority of large drug/biotech companies reported mixed results and issued fresh guidance for 2024, which was largely optimistic. Several smaller biotechs are scheduled to report earnings results this month.
Per the Zacks classification, the pharma/biotech industry comes under the broader Medical sector, which comprises pharma/biotech as well as medical device companies.
Per the Earnings Trends report, as of Feb 14, 80.0% of the Medical sector companies, constituting nearly 94.4% of the sector’s market capitalization, posted earnings. While 77.1% of the companies beat on earnings, 85.4% surpassed revenue estimates. Earnings decreased 16.3% year over year, while revenues rose 7.8%.
Overall, fourth-quarter earnings of the Medical sector are expected to decline 18.0%, while revenues are projected to increase 7.0%.
Zeroing in on Winners
Here, we have highlighted five biotech companies — Moderna (MRNA - Free Report) , BioMarin Pharmaceuticals (BMRN - Free Report) , Amarin Corporation (AMRN - Free Report) , Intellia Therapeutics, Inc. (NTLA - Free Report) and Beam Therapeutics (BEAM - Free Report) — that are expected to deliver a beat in their upcoming quarterly results.
Earnings ESP is our proprietary methodology for determining the stocks that have 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 done 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.
5 Drug/Biotech Stocks That Match the Criteria
Moderna
Cambridge, MA-based Moderna has an Earnings ESP of +37.55% and a Zacks Rank of 3. The Zacks Consensus Estimate for the fourth quarter is pegged at a loss of 82 cents per share. Moderna is set to release results on Feb 22.
MRNA beat estimates in three of the last four quarters while missing in one, with the average surprise being 31.20%.
Revenues from Moderna’s COVID-19 vaccine are likely to have declined in the fourth quarter. The company has initiated regulatory submissions for its RSV vaccine mRNA-1345 in older adults (60 years and older) in several markets, including the United States and Europe.
BioMarin Pharmaceuticals
San Rafael, CA-based BioMarin develops and commercializes medicines for serious life-threatening medical conditions, mainly for children. The company's portfolio comprises eight marketed products.
BioMarin has an Earnings ESP of +30.45% and a Zacks Rank of 3. The Zacks Consensus Estimate for the fourth quarter is pegged at earnings of 44 cents per share. BioMarin is scheduled to release results on Feb 22.
BioMarin beat earnings estimates in two of the last four quarters while missing in one and reporting in-line results on the remaining occasion. The company’s trailing four-quarter average earnings surprise is 11.68%.
BioMarin Pharmaceutical Inc. Price and EPS Surprise
Ireland-based Amarin’s sole marketed drug, Vascepa, is approved as an adjunct to diet for treating severe hypertriglyceridemia or elevated triglyceride (TG) levels and also to reduce cardiovascular risk (CV) in patients with persistent elevated triglycerides on statin therapy for LDL-C.
Amarin has an Earnings ESP of +42.86% and a Zacks Rank of 3. The Zacks Consensus for the fourth quarter is pegged at a loss of 4 cents per share.
Amarin beat estimates in all of the last four quarters. The company’s four-quarter average earnings surprise is 175%. It is expected to release results later this month or early next month.
The Zacks Consensus Estimate for the fourth quarter is pegged at a loss of $1.47 per share.
Intellia Therapeutics beat earnings estimates in two of the last four quarters while missing in one and reporting in-line results on the remaining occasion. The company’s four-quarter average earnings surprise is 5.04%. The company is set to release results on Feb 22.
Intellia Therapeutics, Inc. Price and EPS Surprise
Beam Therapeutics is a Massachusetts-based biotech that has a fully integrated platform for making precision genetic medicines through base editing.
Beam Therapeutics has an Earnings ESP of +2.08% and a Zacks Rank of 3. The Zacks Consensus Estimate for the fourth quarter is pegged at a loss of $1.15 per share.
Beam Therapeutics beat estimates in all of the last four quarters. The company’s four-quarter average earnings surprise is 23.50%. It is expected to release results later this month.
Image: Shutterstock
5 Biotech Stocks Likely to Outpace Q4 Earnings Estimates
It has been a rather lukewarm earnings season for the drug and biotech sector. Majority of large drug/biotech companies reported mixed results and issued fresh guidance for 2024, which was largely optimistic. Several smaller biotechs are scheduled to report earnings results this month.
Per the Zacks classification, the pharma/biotech industry comes under the broader Medical sector, which comprises pharma/biotech as well as medical device companies.
Per the Earnings Trends report, as of Feb 14, 80.0% of the Medical sector companies, constituting nearly 94.4% of the sector’s market capitalization, posted earnings. While 77.1% of the companies beat on earnings, 85.4% surpassed revenue estimates. Earnings decreased 16.3% year over year, while revenues rose 7.8%.
Overall, fourth-quarter earnings of the Medical sector are expected to decline 18.0%, while revenues are projected to increase 7.0%.
Zeroing in on Winners
Here, we have highlighted five biotech companies — Moderna (MRNA - Free Report) , BioMarin Pharmaceuticals (BMRN - Free Report) , Amarin Corporation (AMRN - Free Report) , Intellia Therapeutics, Inc. (NTLA - Free Report) and Beam Therapeutics (BEAM - Free Report) — that are expected to deliver a beat in their upcoming quarterly results.
Earnings ESP is our proprietary methodology for determining the stocks that have 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 done 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.
5 Drug/Biotech Stocks That Match the Criteria
Moderna
Cambridge, MA-based Moderna has an Earnings ESP of +37.55% and a Zacks Rank of 3. The Zacks Consensus Estimate for the fourth quarter is pegged at a loss of 82 cents per share. Moderna is set to release results on Feb 22.
MRNA beat estimates in three of the last four quarters while missing in one, with the average surprise being 31.20%.
Moderna, Inc. Price and EPS Surprise
Moderna, Inc. price-eps-surprise | Moderna, Inc. Quote
Revenues from Moderna’s COVID-19 vaccine are likely to have declined in the fourth quarter. The company has initiated regulatory submissions for its RSV vaccine mRNA-1345 in older adults (60 years and older) in several markets, including the United States and Europe.
BioMarin Pharmaceuticals
San Rafael, CA-based BioMarin develops and commercializes medicines for serious life-threatening medical conditions, mainly for children. The company's portfolio comprises eight marketed products.
BioMarin has an Earnings ESP of +30.45% and a Zacks Rank of 3. The Zacks Consensus Estimate for the fourth quarter is pegged at earnings of 44 cents per share. BioMarin is scheduled to release results on Feb 22.
BioMarin beat earnings estimates in two of the last four quarters while missing in one and reporting in-line results on the remaining occasion. The company’s trailing four-quarter average earnings surprise is 11.68%.
BioMarin Pharmaceutical Inc. Price and EPS Surprise
BioMarin Pharmaceutical Inc. price-eps-surprise | BioMarin Pharmaceutical Inc. Quote
Amarin Corporation
Ireland-based Amarin’s sole marketed drug, Vascepa, is approved as an adjunct to diet for treating severe hypertriglyceridemia or elevated triglyceride (TG) levels and also to reduce cardiovascular risk (CV) in patients with persistent elevated triglycerides on statin therapy for LDL-C.
Amarin has an Earnings ESP of +42.86% and a Zacks Rank of 3. The Zacks Consensus for the fourth quarter is pegged at a loss of 4 cents per share.
Amarin beat estimates in all of the last four quarters. The company’s four-quarter average earnings surprise is 175%. It is expected to release results later this month or early next month.
Amarin Corporation PLC Price and EPS Surprise
Amarin Corporation PLC price-eps-surprise | Amarin Corporation PLC Quote
Intellia Therapeutics
Cambridge, MA-based Intellia Therapeutics is a leading clinical-stage genome editing company focused on developing CRISPR/Cas9-based therapeutics.
Intellia Therapeutics has an Earnings ESP of +31.10% and a Zacks Rank of #2. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for the fourth quarter is pegged at a loss of $1.47 per share.
Intellia Therapeutics beat earnings estimates in two of the last four quarters while missing in one and reporting in-line results on the remaining occasion. The company’s four-quarter average earnings surprise is 5.04%. The company is set to release results on Feb 22.
Intellia Therapeutics, Inc. Price and EPS Surprise
Intellia Therapeutics, Inc. price-eps-surprise | Intellia Therapeutics, Inc. Quote
Beam Therapeutics
Beam Therapeutics is a Massachusetts-based biotech that has a fully integrated platform for making precision genetic medicines through base editing.
Beam Therapeutics has an Earnings ESP of +2.08% and a Zacks Rank of 3. The Zacks Consensus Estimate for the fourth quarter is pegged at a loss of $1.15 per share.
Beam Therapeutics beat estimates in all of the last four quarters. The company’s four-quarter average earnings surprise is 23.50%. It is expected to release results later this month.
Beam Therapeutics Inc. Price and EPS Surprise
Beam Therapeutics Inc. price-eps-surprise | Beam Therapeutics Inc. Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.