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Drug Stocks to Watch for Earnings on Nov 2; AGN, ZTS & More
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The Q3 earnings season moves into the second half of the reporting cycle, with results from 291 S&P 500 members (as of Oct 28), accounting for 58.2% of the index’s total market capitalization, according to the Earnings Preview report.
While total earnings for these 291 index members were up 2.2% from the year-ago quarter, revenues were up 1.3% year over year. The beat ratio was 73.5% for earnings and 57.4% for revenues.
Notably, the ongoing reporting cycle is on track to be the first quarter to show positive earnings growth after five consecutive quarters of earnings decline for the S&P 500 index. Also, the quarter has seen more numerous positive surprises, particularly on the revenue side and estimates for the next quarter (2016 Q4) are also holding up well. The picture is expected to improve steadily hereafter.
Quite a few of the large-cap pharma companies posted better-than-expected third-quarter results. Among the leading companies that reported last week in the healthcare sector, biotech major Amgen Inc. (AMGN - Free Report) beat estimates for both earnings and sales and raised the earnings guidance. On the other hand, although biotech company Alexion Pharmaceuticals, Inc. missed earnings estimates by a penny, the company was able to beat revenue expectations. Bristol-Myers also delivered a “beat and raise” quarter. Meanwhile, Lilly’s results fell short of expectations.
Five more companies from the healthcare sector are set to report their third-quarter results on Nov 2. Let's see how things are shaping up for their respective announcements.
Allergan plc
Allergan posted a positive surprise of 2.13% in the last reported quarter. Allergan’s performance has been pretty impressive, with consistent positive surprises. The average earnings beat over the last four quarters is 3.44%.
The leading pharma company’s top as well as bottom line should continue to be propelled by acquisitions. Drugs like Botox Migraine, Namenda XR, and Vraylar should continue to drive growth. Linzess and Viberzi should also perform well. (Read More: Can Allergan Keep the Earnings Streak Alive in Q3?).
The company has an Earnings ESP of 0.56% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at $3.56.
Our previous article shows that Allergan was unlikely to beat on earnings this quarter. However, estimates changed thereafter and we are reasonably confident about an earnings beat this season.
Last quarter, Zoetis delivered a positive earnings surprise of 11.36%. The leading global animal health company has an impressive track record with the company consistently beating earnings expectations. The average positive earnings surprise over the last four trailing quarters is 15.92%.
The Zacks Consensus Estimate for the quarter is pegged at 46 cents per share. The company has an Earnings ESP of 2.17% and a Zacks Rank #3, indicating a likely positive surprise.
The company’s companion animal business has been performing well in both the U.S. and internationally, and should continue to do so in the to-be-reported quarter. Particularly, Zoetis expects second-half revenues to exceed first-half levels. However, the projected increase in second-half sales may be more than offset by lower gross margins, and the phasing of spending on promotional programs and R&D. (Read More: Zoetis Q3 Earnings: Stock Likely to Beat Estimates).
Based in the Netherlands, QIAGEN is one of the leading providers of sample-to-insight solutions that transform biological samples into valuable molecular insights. The company has an average positive surprise of 0.20% over the trailing four quarters. Last quarter, Zoetis delivered a positive earnings surprise of 4.35%.
The Zacks Consensus Estimate currently stands at 27 cents for the third quarter. The company has a Zacks Rank #3 and an Earnings ESP of +3.70%, indicating a likely positive surprise. Please check our Earnings ESP Filter that enables you find stocks that are expected to come out with earnings surprises.
In the last reported quarter, the global biopharmaceutical company recorded a positive earnings surprise of 45.45%. Overall, Alkermes posted an average positive earnings surprise of 11.03% in the four trailing quarters.
Alkermes has an Earnings ESP of 0.0% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the quarter is pegged at a loss of 25 cents per share.
Cambridge, MA-based Alnylam Pharmaceuticals Inc. is a development-stage biopharmaceutical company focused on the development of novel therapeutics based on RNA interference (RNAi).
Alnylam’s track record is mixed, with positive surprises in two and negative surprises in the remaining two of the last four quarters. The average positive earnings surprise over the last four quarters is a 0.47%. In the last reported quarter, Alnylam recorded a positive earnings surprise of 16.67%. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a loss of 1.19 cents per share.
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Drug Stocks to Watch for Earnings on Nov 2; AGN, ZTS & More
The Q3 earnings season moves into the second half of the reporting cycle, with results from 291 S&P 500 members (as of Oct 28), accounting for 58.2% of the index’s total market capitalization, according to the Earnings Preview report.
While total earnings for these 291 index members were up 2.2% from the year-ago quarter, revenues were up 1.3% year over year. The beat ratio was 73.5% for earnings and 57.4% for revenues.
Notably, the ongoing reporting cycle is on track to be the first quarter to show positive earnings growth after five consecutive quarters of earnings decline for the S&P 500 index. Also, the quarter has seen more numerous positive surprises, particularly on the revenue side and estimates for the next quarter (2016 Q4) are also holding up well. The picture is expected to improve steadily hereafter.
Quite a few of the large-cap pharma companies posted better-than-expected third-quarter results. Among the leading companies that reported last week in the healthcare sector, biotech major Amgen Inc. (AMGN - Free Report) beat estimates for both earnings and sales and raised the earnings guidance. On the other hand, although biotech company Alexion Pharmaceuticals, Inc. missed earnings estimates by a penny, the company was able to beat revenue expectations. Bristol-Myers also delivered a “beat and raise” quarter. Meanwhile, Lilly’s results fell short of expectations.
Five more companies from the healthcare sector are set to report their third-quarter results on Nov 2. Let's see how things are shaping up for their respective announcements.
Allergan plc
Allergan posted a positive surprise of 2.13% in the last reported quarter. Allergan’s performance has been pretty impressive, with consistent positive surprises. The average earnings beat over the last four quarters is 3.44%.
ALLERGAN PLC Price and EPS Surprise
ALLERGAN PLC Price and EPS Surprise | ALLERGAN PLC Quote
The leading pharma company’s top as well as bottom line should continue to be propelled by acquisitions. Drugs like Botox Migraine, Namenda XR, and Vraylar should continue to drive growth. Linzess and Viberzi should also perform well. (Read More: Can Allergan Keep the Earnings Streak Alive in Q3?).
The company has an Earnings ESP of 0.56% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at $3.56.
Our previous article shows that Allergan was unlikely to beat on earnings this quarter. However, estimates changed thereafter and we are reasonably confident about an earnings beat this season.
Zoetis Inc. (ZTS - Free Report)
Last quarter, Zoetis delivered a positive earnings surprise of 11.36%. The leading global animal health company has an impressive track record with the company consistently beating earnings expectations. The average positive earnings surprise over the last four trailing quarters is 15.92%.
ZOETIS INC Price and EPS Surprise
ZOETIS INC Price and EPS Surprise | ZOETIS INC Quote
The Zacks Consensus Estimate for the quarter is pegged at 46 cents per share. The company has an Earnings ESP of 2.17% and a Zacks Rank #3, indicating a likely positive surprise.
The company’s companion animal business has been performing well in both the U.S. and internationally, and should continue to do so in the to-be-reported quarter. Particularly, Zoetis expects second-half revenues to exceed first-half levels. However, the projected increase in second-half sales may be more than offset by lower gross margins, and the phasing of spending on promotional programs and R&D. (Read More: Zoetis Q3 Earnings: Stock Likely to Beat Estimates).
QIAGEN N.V (QGEN - Free Report)
Based in the Netherlands, QIAGEN is one of the leading providers of sample-to-insight solutions that transform biological samples into valuable molecular insights. The company has an average positive surprise of 0.20% over the trailing four quarters. Last quarter, Zoetis delivered a positive earnings surprise of 4.35%.
QIAGEN NV Price and EPS Surprise
QIAGEN NV Price and EPS Surprise | QIAGEN NV Quote
The Zacks Consensus Estimate currently stands at 27 cents for the third quarter. The company has a Zacks Rank #3 and an Earnings ESP of +3.70%, indicating a likely positive surprise. Please check our Earnings ESP Filter that enables you find stocks that are expected to come out with earnings surprises.
Alkermes plc (ALKS - Free Report)
In the last reported quarter, the global biopharmaceutical company recorded a positive earnings surprise of 45.45%. Overall, Alkermes posted an average positive earnings surprise of 11.03% in the four trailing quarters.
ALKERMES INC Price and EPS Surprise
ALKERMES INC Price and EPS Surprise | ALKERMES INC Quote
Alkermes has an Earnings ESP of 0.0% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the quarter is pegged at a loss of 25 cents per share.
Alnylam Pharmaceuticals Inc. (ALNY - Free Report)
Cambridge, MA-based Alnylam Pharmaceuticals Inc. is a development-stage biopharmaceutical company focused on the development of novel therapeutics based on RNA interference (RNAi).
Alnylam’s track record is mixed, with positive surprises in two and negative surprises in the remaining two of the last four quarters. The average positive earnings surprise over the last four quarters is a 0.47%. In the last reported quarter, Alnylam recorded a positive earnings surprise of 16.67%. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a loss of 1.19 cents per share.
ALNYLAM PHARMA Price and EPS Surprise
ALNYLAM PHARMA Price and EPS Surprise | ALNYLAM PHARMA Quote
The company has an Earnings ESP of -9.24% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>