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Drug Stocks Q3 Earnings Roster for Nov 3; ICPT, EXEL, AKRX
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The Q3 earnings season moves into the last leg of its reporting cycle, with 332 S&P 500 members (as of Nov 1) – accounting for 74.1% of the index’s total market capitalization – having already reported results, according to the Earnings Outlook report.
While total earnings for these index members were up 1.9% from the year-ago quarter, revenues were up 1.3% year over year. The beat ratio was 72.9% for earnings and 55.4% for revenues.
Notably, the ongoing reporting cycle is on track to be the first quarter of positive earnings growth after five consecutive quarters of earnings decline for the S&P 500 index. Though the third-quarter reporting cycle saw numerous positive surprises and stability in current-quarter (Q4 2016) estimates in the beginning, these two attributes have started losing ground this week. Positive surprises are less numerous and Q4 estimates have started coming down in a meaningful way.
This change was reflected in the results of pharmaceutical companies as well. Though quite a few of the large-cap pharma companies posted better-than-expected third-quarter results last week, two pharma giants that have reported so far this week – Gilead Sciences Inc. (GILD - Free Report) and Pfizer Inc. (PFE - Free Report) – announced softer-than-expected Q3 results. While Pfizer missed estimates for both earnings and sales, Gilead managed to beat sales expectations marginarrly but missed earnings estimates.
Three more companies from the healthcare sector are set to report their third-quarter results on Nov 3. Let's see how things are shaping up for their respective announcements.
Intercept Pharmaceuticals, Inc.
Intercept Pharmaposted a positive surprise of 16.49% in the last reported quarter. The biopharmaceutical company’s track record has been decent so far, with the company surpassing expectations in three of the last four quarters. The company has posted an average positive earnings surprise of 7.13% over this period.
In the second quarter, Intercept received a major boost with the FDA approval (in May 2016) of its lead drug, Ocaliva, in combination with ursodeoxycholic (UDCA), for the treatment of primary biliary cholangitis (PBC) in adults with an inadequate response to UDCA or as monotherapy in adults unable to tolerate UDCA. The company generated first product sales last quarter. In the third quarter, the product should contribute substantially to the company’s top line. (Read More: Intercept Q3 Earnings Preview: What's in the Cards?)
The company has an Earnings ESP of -12.37% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at a loss of $3.72.
Last quarter, biotech company Exelixis delivered a positive earnings surprise of 40.74%. Exelixis had a mixed track record over the last four quarters. The company surpassed expectations twice and missed the same in the remaining two quarters, with the average positive earnings surprise being 9.10%.
The company received a significant boost in Apr 2016, when the FDA approved Cabometyx a tablet formulation of cabozantinib for the treatment of patients with advanced renal cell carcinoma (RCC) who have received prior anti-angiogenic therapy. Initial uptake of the drug was encouraging and is expected to propel the top line in the forthcoming quarters. (Read More: Exelixis Q3 Earnings: What's in Store for the Stock?)
Akorn, Inc.
The specialty pharma company delivered a positive earnings surprise of 5.66% last quarter.
The Zacks Consensus Estimate currently stands at 52 cents for the third quarter. The company has a Zacks Rank #4 and an Earnings ESP of 0.00%. Please check our Earnings ESP Filter that enables you find stocks that are expected to come out with earnings surprises.
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Drug Stocks Q3 Earnings Roster for Nov 3; ICPT, EXEL, AKRX
The Q3 earnings season moves into the last leg of its reporting cycle, with 332 S&P 500 members (as of Nov 1) – accounting for 74.1% of the index’s total market capitalization – having already reported results, according to the Earnings Outlook report.
While total earnings for these index members were up 1.9% from the year-ago quarter, revenues were up 1.3% year over year. The beat ratio was 72.9% for earnings and 55.4% for revenues.
Notably, the ongoing reporting cycle is on track to be the first quarter of positive earnings growth after five consecutive quarters of earnings decline for the S&P 500 index. Though the third-quarter reporting cycle saw numerous positive surprises and stability in current-quarter (Q4 2016) estimates in the beginning, these two attributes have started losing ground this week. Positive surprises are less numerous and Q4 estimates have started coming down in a meaningful way.
This change was reflected in the results of pharmaceutical companies as well. Though quite a few of the large-cap pharma companies posted better-than-expected third-quarter results last week, two pharma giants that have reported so far this week – Gilead Sciences Inc. (GILD - Free Report) and Pfizer Inc. (PFE - Free Report) – announced softer-than-expected Q3 results. While Pfizer missed estimates for both earnings and sales, Gilead managed to beat sales expectations marginarrly but missed earnings estimates.
Three more companies from the healthcare sector are set to report their third-quarter results on Nov 3. Let's see how things are shaping up for their respective announcements.
Intercept Pharmaceuticals, Inc.
Intercept Pharmaposted a positive surprise of 16.49% in the last reported quarter. The biopharmaceutical company’s track record has been decent so far, with the company surpassing expectations in three of the last four quarters. The company has posted an average positive earnings surprise of 7.13% over this period.
INTERCEPT PHARM Price and EPS Surprise
INTERCEPT PHARM Price and EPS Surprise | INTERCEPT PHARM Quote
In the second quarter, Intercept received a major boost with the FDA approval (in May 2016) of its lead drug, Ocaliva, in combination with ursodeoxycholic (UDCA), for the treatment of primary biliary cholangitis (PBC) in adults with an inadequate response to UDCA or as monotherapy in adults unable to tolerate UDCA. The company generated first product sales last quarter. In the third quarter, the product should contribute substantially to the company’s top line. (Read More: Intercept Q3 Earnings Preview: What's in the Cards?)
The company has an Earnings ESP of -12.37% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at a loss of $3.72.
Exelixis, Inc. (EXEL - Free Report)
Last quarter, biotech company Exelixis delivered a positive earnings surprise of 40.74%. Exelixis had a mixed track record over the last four quarters. The company surpassed expectations twice and missed the same in the remaining two quarters, with the average positive earnings surprise being 9.10%.
EXELIXIS INC Price and EPS Surprise
EXELIXIS INC Price and EPS Surprise | EXELIXIS INC Quote
The Zacks Consensus Estimate for the quarter is pegged at a loss of 13 cents per share. The company has an Earnings ESP of -7.69% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company received a significant boost in Apr 2016, when the FDA approved Cabometyx a tablet formulation of cabozantinib for the treatment of patients with advanced renal cell carcinoma (RCC) who have received prior anti-angiogenic therapy. Initial uptake of the drug was encouraging and is expected to propel the top line in the forthcoming quarters. (Read More: Exelixis Q3 Earnings: What's in Store for the Stock?)
Akorn, Inc.
The specialty pharma company delivered a positive earnings surprise of 5.66% last quarter.
AKORN INC Price and EPS Surprise
AKORN INC Price and EPS Surprise | AKORN INC Quote
The Zacks Consensus Estimate currently stands at 52 cents for the third quarter. The company has a Zacks Rank #4 and an Earnings ESP of 0.00%. Please check our Earnings ESP Filter that enables you find stocks that are expected to come out with earnings surprises.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more.Click here for a peek at this private information >>