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What's in Store for these 5 Drug Stocks in Q2 Earnings?
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Q2 earnings season is picking up pace with 1,000 companies including 189 S&P 500 members scheduled to report this week.
So far, about 126 S&P 500 members have reported results accounting for 32.7% of the index’s total market capitalization. While total earnings for these 126 index members are down 1.1% from the year-ago quarter, revenues declined 2.6% year-over year, with 70.6% beating earnings estimates and 55.6% surpassing top-line expectations.
The picture so far indicates a slight improvement from the results seen in the last two quarters. However, growth remains non-existent and Q2 is on track to be the 5th quarter in a row of earnings declines for the S&P 500 index.
How has the Medical Sector Fared So Far?
A look at our Earnings Trend report shows that as of Jul 21, 2016, 13.5% of Medical companies (within the S&P 500 index) reported results with earnings growing 6.9% from the year-ago period on revenue growth of 17.6%. Results of companies like Johnson & Johnson (JNJ - Free Report) and Biogen, Inc. (BIIB - Free Report) not only soared past expectations, guidance for the year was also raised. Abbott also surpassed expectations (Read more: Abbott Beats on Earnings & Sales in Q2, Maintains View).
Once again, the Medical sector is expected to be among the better-performing sectors in Q2 with earnings expected to grow 1.7% on revenue growth of 7.7%.
This week, several medical companies are scheduled to report results. Here’s a look at how 5 biotech and diagnostic stocks, scheduled to report results on Jul 26, are placed ahead of the scheduled announcements.
San Francisco, CA-based Medivation, Inc. is a biopharmaceutical company that focuses on the development of novel small molecule drugs for the treatment of serious diseases for which there are limited treatment options. Medivation currently has one marketed product – Xtandi – in its portfolio. The company is expected to report second quarter results on Jul 26.
Medivation’s earnings track record is pretty disappointing, with the company reporting lower-than-expected earnings in three of the last four quarters with an average earnings surprise of –19.74%. Medivation currently has a Zacks Rank #5 (Strong Sell) and an Earnings ESP of 0.00%, which makes surprise prediction difficult. In fact, sell-rated stocks (#4 and #5) should never be considered going into an earnings announcement.
Madison, WI-based Exact Sciences Corporation (EXAS - Free Report) is a molecular diagnostics company with a pretty good earnings track record. The company surpassed expectations in three of the last four quarters with an average earnings surprise of +5.95%. However, Exact’s Zacks Rank #3 (Hold) and Earnings ESP of 0.00% makes surprise prediction for Q2 difficult. Exact will be reporting second quarter results on Jul 26 before the market opens.
Fort Myers, FL-based NeoGenomics, Inc. (NEO - Free Report) will also be reporting second quarter results on Jul 26. The company, which specializes in cancer genetics testing and information services, has a pretty impressive earnings track record with an average surprise of +113.33%. However, NeoGenomics’ Zacks Rank #2 (Buy) and Earnings ESP of 0.00% makes surprise prediction for Q2 difficult.
Clinical-stage biopharma company, Alder BioPharmaceuticals, Inc. , will report its second quarter 2016 financial results on Jul 26 after the market closes. The Bothell, WA-based company is focused on the development of antibodies with the potential to meaningfully transform current treatment paradigms. The company’s lead pipeline candidate is being developed for the prevention of migraine.
Alder’s earnings track record is pretty disappointing with the company missing expectations in three of the last four quarters with an average surprise of -5.39%. Moreover, Alder’s Zacks Rank #2 and Earnings ESP of -4.00% make surprise prediction for Q2 difficult.
Seattle Genetics, Inc. , another Bothell, WA-based biotechnology company, will be reporting second quarter results on Jul 26 after the market closes. Focused on the development and commercialization of targeted therapies for the treatment of cancer, Seattle Genetics has a marketed drug, Adcetris, in its portfolio.
Seattle Genetics’ earnings track record is quite dismal with the company missing expectations in each of the last four quarters with an average surprise of -28.12%. Moreover, Seattle Genetics’ Zacks Rank #3 and Earnings ESP of -6.06% make surprise prediction for Q2 difficult.
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What's in Store for these 5 Drug Stocks in Q2 Earnings?
Q2 earnings season is picking up pace with 1,000 companies including 189 S&P 500 members scheduled to report this week.
So far, about 126 S&P 500 members have reported results accounting for 32.7% of the index’s total market capitalization. While total earnings for these 126 index members are down 1.1% from the year-ago quarter, revenues declined 2.6% year-over year, with 70.6% beating earnings estimates and 55.6% surpassing top-line expectations.
The picture so far indicates a slight improvement from the results seen in the last two quarters. However, growth remains non-existent and Q2 is on track to be the 5th quarter in a row of earnings declines for the S&P 500 index.
How has the Medical Sector Fared So Far?
A look at our Earnings Trend report shows that as of Jul 21, 2016, 13.5% of Medical companies (within the S&P 500 index) reported results with earnings growing 6.9% from the year-ago period on revenue growth of 17.6%. Results of companies like Johnson & Johnson (JNJ - Free Report) and Biogen, Inc. (BIIB - Free Report) not only soared past expectations, guidance for the year was also raised. Abbott also surpassed expectations (Read more: Abbott Beats on Earnings & Sales in Q2, Maintains View).
Once again, the Medical sector is expected to be among the better-performing sectors in Q2 with earnings expected to grow 1.7% on revenue growth of 7.7%.
This week, several medical companies are scheduled to report results. Here’s a look at how 5 biotech and diagnostic stocks, scheduled to report results on Jul 26, are placed ahead of the scheduled announcements.
San Francisco, CA-based Medivation, Inc. is a biopharmaceutical company that focuses on the development of novel small molecule drugs for the treatment of serious diseases for which there are limited treatment options. Medivation currently has one marketed product – Xtandi – in its portfolio. The company is expected to report second quarter results on Jul 26.
Medivation’s earnings track record is pretty disappointing, with the company reporting lower-than-expected earnings in three of the last four quarters with an average earnings surprise of –19.74%. Medivation currently has a Zacks Rank #5 (Strong Sell) and an Earnings ESP of 0.00%, which makes surprise prediction difficult. In fact, sell-rated stocks (#4 and #5) should never be considered going into an earnings announcement.
MEDIVATION INC Price and EPS Surprise
MEDIVATION INC Price and EPS Surprise | MEDIVATION INC Quote
Madison, WI-based Exact Sciences Corporation (EXAS - Free Report) is a molecular diagnostics company with a pretty good earnings track record. The company surpassed expectations in three of the last four quarters with an average earnings surprise of +5.95%. However, Exact’s Zacks Rank #3 (Hold) and Earnings ESP of 0.00% makes surprise prediction for Q2 difficult. Exact will be reporting second quarter results on Jul 26 before the market opens.
EXACT SCIENCES Price and EPS Surprise
EXACT SCIENCES Price and EPS Surprise | EXACT SCIENCES Quote
Fort Myers, FL-based NeoGenomics, Inc. (NEO - Free Report) will also be reporting second quarter results on Jul 26. The company, which specializes in cancer genetics testing and information services, has a pretty impressive earnings track record with an average surprise of +113.33%. However, NeoGenomics’ Zacks Rank #2 (Buy) and Earnings ESP of 0.00% makes surprise prediction for Q2 difficult.
NEOGENOMICS INC Price and EPS Surprise
NEOGENOMICS INC Price and EPS Surprise | NEOGENOMICS INC Quote
Clinical-stage biopharma company, Alder BioPharmaceuticals, Inc. , will report its second quarter 2016 financial results on Jul 26 after the market closes. The Bothell, WA-based company is focused on the development of antibodies with the potential to meaningfully transform current treatment paradigms. The company’s lead pipeline candidate is being developed for the prevention of migraine.
Alder’s earnings track record is pretty disappointing with the company missing expectations in three of the last four quarters with an average surprise of -5.39%. Moreover, Alder’s Zacks Rank #2 and Earnings ESP of -4.00% make surprise prediction for Q2 difficult.
ALDER BIOPHARMA Price and EPS Surprise
ALDER BIOPHARMA Price and EPS Surprise | ALDER BIOPHARMA Quote
Seattle Genetics, Inc. , another Bothell, WA-based biotechnology company, will be reporting second quarter results on Jul 26 after the market closes. Focused on the development and commercialization of targeted therapies for the treatment of cancer, Seattle Genetics has a marketed drug, Adcetris, in its portfolio.
Seattle Genetics’ earnings track record is quite dismal with the company missing expectations in each of the last four quarters with an average surprise of -28.12%. Moreover, Seattle Genetics’ Zacks Rank #3 and Earnings ESP of -6.06% make surprise prediction for Q2 difficult.
SEATTLE GENETIC Price and EPS Surprise
SEATTLE GENETIC Price and EPS Surprise | SEATTLE GENETIC Quote
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