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Genetic Stocks to Watch for Earnings on Nov 1: GILD & More

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As Q3 earnings season gains momentum, approximately 291 S&P 500 members (representing 58.2% of the index’s total market capitalization) have already reported quarterly results as of Oct 28.

While total earnings for these 291 index members were up 2.2% year over year, revenues inched up 1.3%. Notably, 73.5% surpassed earnings estimates, while 57.4% exceeded top-line expectations.

With several healthcare companies slated to report their earnings results this week, focus rightfully shifts to the Medical sector. As per our Earnings Preview report, earnings at the sector will improve 6% year over year on 7.3% higher revenues this quarter.

Within the Medical sector, results of the genetic stocks reported so far have been a mixed bag. Amgen Inc. (AMGN - Free Report) reported quarterly results wherein both earnings and revenues surpassed expectations. The company also raised the low end of its revenue guidance, and lifted the earnings guidance range. (Read more: Amgen Q3 Earnings & Sales Top; Enbrel Hurts Stock).

On the other hand, although biotech company Alexion Pharmaceuticals, Inc. missed earnings estimates by a penny, the company was able to beat revenue expectations. Alexion has also raised its guidance for total revenue and adjusted earnings for 2016. (Read more: Alexion Q3 Earnings Lag, Revenues Tops; Lifts View).

With this in the backdrop, let’s take a look at five genetic stocks that will report earnings on Nov 1.

Will These Stocks Surprise?

Biotech major, Gilead Sciences Inc. (GILD - Free Report) will release earnings results after the market closes. The company is known for its presence in the hepatitis C virus (HCV) space on the back of its blockbuster drugs, Sovaldi and Harvoni. The company has a pretty good track record with average earnings surprise of +4.08%. Moreover, for the quarter, Gilead has an Earnings ESP of +0.37%. However, the company currently carries a Zacks Rank #5 (Strong Sell) and we caution against sell-rated stocks (#4 or #5) going into an earnings announcement.

The Zacks Consensus Estimate for the quarter is pegged at $2.74. Focus is expected to be on the performance of Gilead’s HCV and HIV franchises, and the recently launched tenofovir alafenamide (TAF)-based regimens, Genvoya, Odefsey and Descovy. (Read more: Gilead Sciences Q3 Earnings: Stock to Disappoint?)

GILEAD SCIENCES Price and EPS Surprise

 

GILEAD SCIENCES Price and EPS Surprise | GILEAD SCIENCES Quote

Life sciences company Illumina Inc. (ILMN - Free Report) is also scheduled to report results after the market closes. The company’s track record has been mixed so far. Over the past four quarters, the company has exceeded expectations twice, bringing the average earnings surprise to +3.45%. The company provides tools and integrated systems for the analysis of genetic variation and function. This Zacks Rank #5 stock has a 0.00% Earnings ESP. The Zacks Consensus Estimate for the quarter is pegged at 87 cents. In the upcoming quarterly earnings call, investor focus should be on the HiSeq X instruments and arrays products. (Read more: llumina Q3 Earnings: Disappointment in the Cards?)

ILLUMINA INC Price and EPS Surprise

 

ILLUMINA INC Price and EPS Surprise | ILLUMINA INC Quote

Copenhagen, Denmark-based Genmab A/S (GNMSF - Free Report) is expected to report earnings results on Nov 1. The company focuses on the development of differentiated antibody therapeutics for the treatment of cancer. During the upcoming earnings release, focus should be on the two approved antibodies in the company’s portfolio – Arzerra (for certain chronic lymphocytic leukemia indications) and Darzalex (for heavily pre-treated or double refractory multiple myeloma).

Last quarter, Genmab reported a positive earnings surprise of 70.83%. Though the company’s Zacks Rank #3 (Hold) enhances the predictive power of the ESP, its 0.00% ESP makes surprise prediction difficult for the quarter. The Zacks Consensus Estimate is pegged at 24 cents. Please check our Earnings ESP Filter that enables you find stocks that are expected to come out with earnings surprises.

GENMAB A/S Price and EPS Surprise

 

GENMAB A/S Price and EPS Surprise | GENMAB A/S Quote

Cambrex Corporation is also expected to reveal quarterly numbers on Nov 1. The company’s track record has been decent so far, with the company surpassing expectations in three out of the past four quarters. It has delivered an average earnings surprise of +19.42%. The company specializes in products, services and technologies to accelerate the development and commercialization of small-molecule therapeutics. The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Although a favorable Zacks Rank increases the predictive power of ESP, Cambrex’s 0.00% Earnings ESP makes surprise prediction difficult this season. The Zacks Consensus Estimate for the quarter stands at 41 cents.

CAMBREX CORP Price and EPS Surprise

 

CAMBREX CORP Price and EPS Surprise | CAMBREX CORP Quote

Cranbury, NJ-based Amicus Therapeutics, Inc. (FOLD - Free Report) is also expected to announce quarterly results on Nov 1. The development-stage biotechnology company focuses on rare and orphan diseases. Its track record has been quite disappointing so far, with the company’s earnings meeting estimates only once and missing the same thrice over the last four quarters. This brings the average earnings surprise for the trailing four quarters to -14.30%. This Zacks Rank #3 (Hold) company has an Earnings ESP of -16.13%, which makes surprise prediction difficult for the quarter. The Zacks Consensus Estimate for the quarter is pegged at a loss of 31 cents. During the upcoming earnings release, focus should be on pipeline updates by the company.

AMICUS THERAPT Price and EPS Surprise

 

AMICUS THERAPT Price and EPS Surprise | AMICUS THERAPT Quote

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