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Organon (OGN) Gears Up to Report Q1 Earnings: What's in Store?
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Organon & Co. (OGN - Free Report) is scheduled to release first-quarter 2024 results on May 2, before the opening bell.
In the last reported quarter, the company’s earnings beat estimates by 10%. It delivered an average earnings surprise of 5.1% in the past four quarters.
Q1 Estimates
The Zacks Consensus Estimate for revenues is pegged at $1.57 billion. The consensus mark for earnings is pinned at 97 cents per share.
Factors to Note
Organon’s first quarter witnessed growth in the Women’s Health revenues on the back of strong demand for the company’s fertility products like Follistim, which grew significantly due to a one-time buy-in because of exiting the Interim Operating Model as well as increased demand in the United States tied to onboarding a significant new customer. Due to volume drivers being non-recurring, the company expects a light first quarter for the fertility business, which is likely to have lowered sales.
However, the strong performance of oral contraceptives like Marvelon and Mercilon and the continued uptake of the Jada system are likely to have continued in the to-be-reported quarter, partially offsetting the top-line decline due to weak fertility product sales.
The company’s Biosimilar business reported growth in sales during the last reported quarter, which was driven by products like Ontruzant, Renflexis and Hadlima. This momentum is likely to have continued in the to-be-reported quarter as well.
In the fourth quarter, Organon’s Established Brands revenues grew as well despite the impacts of volume-based procurement initiatives and a challenging operating environment in China. This franchise is expected to have performed well in the first quarter of 2024.
Meanwhile, the gross margin is likely to have been under pressure during the to-be-reported quarter due to unfavorable foreign exchange translation product mix.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for OGN this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -5.16%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Organon currently carries a Zacks Rank #3.
The company’s shares have rallied 12.7% year to date. NVCR’s earnings beat estimates in the last reported quarter. It delivered a trailing four-quarter average negative earnings surprise of 5.07%.
SiBone (SIBN - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank of 3 at present.
Shares of the company have lost 26.6% year to date. SIBN’s earnings beat estimates in the last reported quarter. SiBone has a trailing four-quarter average earnings surprise of 19.98%.
Blueprint Medicines Corporation (BPMC - Free Report) has an Earnings ESP of +16.92% and a Zacks Rank of 2. BPMC has an estimated long-term growth rate of 34%.
Blueprint Medicines’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 13.3%.
Image: Bigstock
Organon (OGN) Gears Up to Report Q1 Earnings: What's in Store?
Organon & Co. (OGN - Free Report) is scheduled to release first-quarter 2024 results on May 2, before the opening bell.
In the last reported quarter, the company’s earnings beat estimates by 10%. It delivered an average earnings surprise of 5.1% in the past four quarters.
Q1 Estimates
The Zacks Consensus Estimate for revenues is pegged at $1.57 billion. The consensus mark for earnings is pinned at 97 cents per share.
Factors to Note
Organon’s first quarter witnessed growth in the Women’s Health revenues on the back of strong demand for the company’s fertility products like Follistim, which grew significantly due to a one-time buy-in because of exiting the Interim Operating Model as well as increased demand in the United States tied to onboarding a significant new customer. Due to volume drivers being non-recurring, the company expects a light first quarter for the fertility business, which is likely to have lowered sales.
However, the strong performance of oral contraceptives like Marvelon and Mercilon and the continued uptake of the Jada system are likely to have continued in the to-be-reported quarter, partially offsetting the top-line decline due to weak fertility product sales.
The company’s Biosimilar business reported growth in sales during the last reported quarter, which was driven by products like Ontruzant, Renflexis and Hadlima. This momentum is likely to have continued in the to-be-reported quarter as well.
In the fourth quarter, Organon’s Established Brands revenues grew as well despite the impacts of volume-based procurement initiatives and a challenging operating environment in China. This franchise is expected to have performed well in the first quarter of 2024.
Meanwhile, the gross margin is likely to have been under pressure during the to-be-reported quarter due to unfavorable foreign exchange translation product mix.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for OGN this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -5.16%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Organon currently carries a Zacks Rank #3.
Organon & Co. Price and EPS Surprise
Organon & Co. price-eps-surprise | Organon & Co. Quote
Stocks to Consider
Here are a few other medical stocks worth considering, as these also have the right combination of elements to beat on earnings this reporting cycle.
NovoCure Limited (NVCR - Free Report) has an Earnings ESP of +13.15% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company’s shares have rallied 12.7% year to date. NVCR’s earnings beat estimates in the last reported quarter. It delivered a trailing four-quarter average negative earnings surprise of 5.07%.
SiBone (SIBN - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank of 3 at present.
Shares of the company have lost 26.6% year to date. SIBN’s earnings beat estimates in the last reported quarter. SiBone has a trailing four-quarter average earnings surprise of 19.98%.
Blueprint Medicines Corporation (BPMC - Free Report) has an Earnings ESP of +16.92% and a Zacks Rank of 2. BPMC has an estimated long-term growth rate of 34%.
Blueprint Medicines’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 13.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.