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Bayer (BAYRY) Q4 Earnings Top, Crop Science Unit Drives Revenues
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Bayer AG (BAYRY - Free Report) reported fourth-quarter 2023 core earnings of 50 cents per American Depositary Receipt (ADR), which beat the Zacks Consensus Estimate of 45 cents. The company reported earnings of 34 cents per ADR in the year-ago quarter.
Core earnings of €1.85 per share rose 37% year over year in the fourth quarter of 2023.
Total sales in the reported quarter were $12.77 billion (€11.86 billion), down 1.2% on a reported basis. On a currency and portfolio-adjusted basis, sales rose 5.5% year over year.
All growth rates mentioned below are on a year-over-year basis after adjusting for currency and portfolio changes.
Quarter in Detail
Bayer reports under three segments, namely Crop Science, Pharmaceuticals and Consumer Health.
In the reported quarter, Crop Science sales increased 6% to €5.6 billion, driven by higher volumes in all regions, partially offset by lower prices for glyphosate-based products due to reduced prices for generics.
Herbicides sales declined 8.7% due to lower prices for glyphosate-based products across all regions. However, Fungicides sales were up 26.2%, mainly due to higher prices in Europe/Middle East/Africa and increased volumes in Latin and North America. The Vegetable Seeds business improved 11.5% in the reported quarter, driven by price increases in all regions. Sales of Corn Seed & Traits improved 8.8% on increased prices in all regions. The Soybean Seed & Traits business also recorded 10.3% growth, mainly due to higher license revenues in Latin America.
Shares of Bayer have plunged 53.4% in the past year against the industry’s growth of 32.5%.
Image Source: Zacks Investment Research
Revenues in the Pharmaceuticals segment increased 1.7% to €4.6 billion in the fourth quarter. Sales declined in China due to the tender procedure, especially for Adalat (nifedipine) and lower demand for Aspirin cardio. Revenues from this business segment were also indirectly hurt by China’s anti-corruption campaign in the healthcare sector.
However, Bayer’s new products, Nubeqa for cancer and Kerendia for the treatment of patients with chronic kidney disease associated with type II diabetes continued to grow in the reported quarter, along with its Radiology business. Nubeqa sales increased 71.9%, recording gains in all regions and witnessing significant improvements in volumes. Kerendia sales surged 86.9% in the fourth quarter of 2023, mainly due to a substantial rise in volumes in the United States.
Other product sales, such as the oral anticoagulant Xarelto, co-developed with J&J (JNJ - Free Report) , declined 8.5% in the fourth quarter because of competitive and pricing pressure from generics, especially in China and the United Kingdom. In the U.S. market, Xarelto is marketed by a subsidiary of J&J. Bayer earns license revenues from JNJ for Xarelto sales in the United States, which were down year over year.
Sales of the ophthalmology drug, Eylea, increased 6.7%, driven by the expansion of business as a result of higher volumes in all regions, particularly in Canada and the EU, offset by falling prices in the EU. Please note that Bayer’s HealthCare unit co-develops Eylea with Regeneron (REGN - Free Report) . Regeneron records net product sales of Eylea in the United States. BAYRY records net product sales of Eylea outside the United States. REGN records its share of profits/losses in connection with sales of Eylea outside the United States.
Consumer Health sales climbed 14.1% to €1.6 billion as sales of dermatology business and Pain & Cardio product sales increased. Sales of cough, cold and allergy products also increased 8% despite a weaker allergy season due to weather-related factors.
Dermatology sales increased 18.8% to €345 million, driven by continued strong demand for Bepanthen and Canesten. Sales in the Nutritionals category also rose 9.5% in the reported quarter.
Bayer Aktiengesellschaft Price, Consensus and EPS Surprise
Revenues in 2023 came in at €47.6 billion, down 6.1% on a reported basis and down 1.2% after adjusting for currency and portfolio changes, from €50.7 billion recorded in 2022.
Core earnings per share (EPS) came in at €6.39, down 19.5% year over year.
2024 Guidance
In 2024, Bayer expects to record total sales of €46-€48 billion. However, on a currency-adjusted basis, the company expects to generate sales in the range of €47-€49 billion.
Core earnings per share are anticipated between €4.95 and €5.35. However, on a currency-adjusted basis, the company forecasts core earnings per share in the range of €5.10-€5.50.
In the past 30 days, the Zacks Consensus Estimate for ADMA Biologics’ 2024 earnings per share (EPS) has increased from 22 cents to 30 cents. During the same period, the estimate for ADMA’s 2025 EPS has increased from 32 cents to 50 cents. Over the past year, shares of ADMA have surged 70.6%.
ADMA beat estimates in three of the trailing four quarters and matched in one, delivering an average earnings surprise of 85%.
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Bayer (BAYRY) Q4 Earnings Top, Crop Science Unit Drives Revenues
Bayer AG (BAYRY - Free Report) reported fourth-quarter 2023 core earnings of 50 cents per American Depositary Receipt (ADR), which beat the Zacks Consensus Estimate of 45 cents. The company reported earnings of 34 cents per ADR in the year-ago quarter.
Core earnings of €1.85 per share rose 37% year over year in the fourth quarter of 2023.
Total sales in the reported quarter were $12.77 billion (€11.86 billion), down 1.2% on a reported basis. On a currency and portfolio-adjusted basis, sales rose 5.5% year over year.
All growth rates mentioned below are on a year-over-year basis after adjusting for currency and portfolio changes.
Quarter in Detail
Bayer reports under three segments, namely Crop Science, Pharmaceuticals and Consumer Health.
In the reported quarter, Crop Science sales increased 6% to €5.6 billion, driven by higher volumes in all regions, partially offset by lower prices for glyphosate-based products due to reduced prices for generics.
Herbicides sales declined 8.7% due to lower prices for glyphosate-based products across all regions. However, Fungicides sales were up 26.2%, mainly due to higher prices in Europe/Middle East/Africa and increased volumes in Latin and North America. The Vegetable Seeds business improved 11.5% in the reported quarter, driven by price increases in all regions. Sales of Corn Seed & Traits improved 8.8% on increased prices in all regions. The Soybean Seed & Traits business also recorded 10.3% growth, mainly due to higher license revenues in Latin America.
Shares of Bayer have plunged 53.4% in the past year against the industry’s growth of 32.5%.
Image Source: Zacks Investment Research
Revenues in the Pharmaceuticals segment increased 1.7% to €4.6 billion in the fourth quarter. Sales declined in China due to the tender procedure, especially for Adalat (nifedipine) and lower demand for Aspirin cardio. Revenues from this business segment were also indirectly hurt by China’s anti-corruption campaign in the healthcare sector.
However, Bayer’s new products, Nubeqa for cancer and Kerendia for the treatment of patients with chronic kidney disease associated with type II diabetes continued to grow in the reported quarter, along with its Radiology business. Nubeqa sales increased 71.9%, recording gains in all regions and witnessing significant improvements in volumes. Kerendia sales surged 86.9% in the fourth quarter of 2023, mainly due to a substantial rise in volumes in the United States.
Other product sales, such as the oral anticoagulant Xarelto, co-developed with J&J (JNJ - Free Report) , declined 8.5% in the fourth quarter because of competitive and pricing pressure from generics, especially in China and the United Kingdom. In the U.S. market, Xarelto is marketed by a subsidiary of J&J. Bayer earns license revenues from JNJ for Xarelto sales in the United States, which were down year over year.
Sales of the ophthalmology drug, Eylea, increased 6.7%, driven by the expansion of business as a result of higher volumes in all regions, particularly in Canada and the EU, offset by falling prices in the EU. Please note that Bayer’s HealthCare unit co-develops Eylea with Regeneron (REGN - Free Report) . Regeneron records net product sales of Eylea in the United States. BAYRY records net product sales of Eylea outside the United States. REGN records its share of profits/losses in connection with sales of Eylea outside the United States.
Consumer Health sales climbed 14.1% to €1.6 billion as sales of dermatology business and Pain & Cardio product sales increased. Sales of cough, cold and allergy products also increased 8% despite a weaker allergy season due to weather-related factors.
Dermatology sales increased 18.8% to €345 million, driven by continued strong demand for Bepanthen and Canesten. Sales in the Nutritionals category also rose 9.5% in the reported quarter.
Bayer Aktiengesellschaft Price, Consensus and EPS Surprise
Bayer Aktiengesellschaft price-consensus-eps-surprise-chart | Bayer Aktiengesellschaft Quote
2023 Results
Revenues in 2023 came in at €47.6 billion, down 6.1% on a reported basis and down 1.2% after adjusting for currency and portfolio changes, from €50.7 billion recorded in 2022.
Core earnings per share (EPS) came in at €6.39, down 19.5% year over year.
2024 Guidance
In 2024, Bayer expects to record total sales of €46-€48 billion. However, on a currency-adjusted basis, the company expects to generate sales in the range of €47-€49 billion.
Core earnings per share are anticipated between €4.95 and €5.35. However, on a currency-adjusted basis, the company forecasts core earnings per share in the range of €5.10-€5.50.
Zacks Rank & Stock to Consider
Bayer currently carries a Zacks Rank #4 (Sell).
A better-ranked stock in the drug/biotech industry is ADMA Biologics (ADMA - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for ADMA Biologics’ 2024 earnings per share (EPS) has increased from 22 cents to 30 cents. During the same period, the estimate for ADMA’s 2025 EPS has increased from 32 cents to 50 cents. Over the past year, shares of ADMA have surged 70.6%.
ADMA beat estimates in three of the trailing four quarters and matched in one, delivering an average earnings surprise of 85%.