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Tale of the Tape

Zacks Equity Research

Regeneron (REGN) Q3 Earnings Top Estimates, Sales Miss
November 04, 2016

REGN

Trades from $3

Tarrytown, NY-based Regeneron Pharmaceuticals, Inc. (REGN - Free Report) is a biopharmaceutical company focused on the discovery, development and commercialization of products for the treatment of serious medical conditions including eye diseases, high LDL cholesterol. Currently, the company has three marketed products in its portfolio – Eylea, Arcalyst and Praluent.

Eye drug, Eylea, should continue to remain the key growth driver contributing significantly to the top line. Meanwhile, Regeneron received a major boost when its PCSK9 inhibitor, Praluent, which the company has co-developed with Sanofi, gained approval in the U.S. The cholesterol management market represents huge commercial potential.

In this scenario, investor focus should remain on the performance of Eylea and Praluent apart from the usual top-and bottom-line numbers.

Regeneron’s performance has been mixed so far. In the last four reported quarters, it has surpassed earnings estimates on two occasions and missed the same twice. Overall, the company has recorded an average negative earnings surprise of 2.04%.

REGENERON PHARM Price and EPS Surprise

Currently, Regeneron has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Regeneron’s third-quarter 2016 earnings surpassed expectations. Our consensus called for EPS of $2.27 and the company reported EPS of $2.41 (including the impact of share-based compensation expenses and tax adjustments).

Revenues: However, revenues in the reported quarter fell short of expectations. Regeneron posted revenues of $1.22 billion, compared to our consensus estimate of $1.28 billion.

Key Stats: Eylea global net sales increased 20% year over year to $1.32 billion. Regeneron raised low end of Eylea U.S. net sales guidance for 2016. The company now expects U.S. Eylea net sales to grow 23–25% year over year. Previously, it had anticipated Eylea sales to grow 20–25% year over year.

Pre-Market Trading: Shares were down around 1% in the pre-market trading.

Check back later for our full write up on this REGN earnings report later!

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