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Analyst Blog

It’s nearing the closing bell of the third-quarter 2016 earnings season with approximately 423 S&P 500 members (representing 84.6% of the index’s total market capitalization) having reported quarterly results as of Nov 4.

An impressive 72.8% of these companies managed to record an earnings beat, while 55.1% posted better-than-expected sales.

Meanwhile, Medical, being one of the several sectors poised to witness growth in the positive territory, is in the limelight, with numerous pharma and major biotech companies having reported earnings results already. In fact, our Q3 scorecard shows that 86.8% of the Medical sector has reported results with earnings growth of 6.4% on 7.4% higher revenues. The blended beat for the sector, which represents the percentage of companies that have beaten both earnings and revenue estimates, stands at 41.3%.

As per our Earnings Preview report, earnings at the sector are expected to improve 6.2% year over year on 7.3% higher revenues once the reporting season ends.

Let’s take a sneak peek into five companies in the medical sector that are scheduled to report third-quarter results on Nov 9.

Generic drug maker Mylan N.V. (MYL - Free Report) is scheduled to report results after the market closes. The company’s performance has been decent so far, having beaten earnings estimates in three out of the four trailing quarters with an average positive surprise of 0.86%. However, Mylan currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -1.99%, which makes a positive surprise unlikely. The Zacks Consensus Estimate for the quarter is pegged at $1.51. Note that we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

The company’s business segments – Generics and Specialty – should continue to perform well in Q3. On the third-quarter call, focus will be on the company’s performance as well as on the EpiPen pricing controversy. (Read more: Mylan to Report Q3 Earnings: Stock Likely to Disappoint)

MYLAN NV Price and EPS Surprise

 

MYLAN NV Price and EPS Surprise | MYLAN NV Quote

Ionis Pharmaceuticals, Inc.’s (IONS - Free Report) track record has been mixed so far with the company beating expectations on two occasions and missing on the other two. Over the four trailing quarters, it has posted an average negative earnings surprise of 4.59%. Though Ionis has a favorable Zacks Rank #3 (Hold), its Earnings ESP of 0.00% makes a surprise prediction difficult. The Zacks Consensus Estimate for the quarter is pegged at 7 cents.

Ionis’ agreements with leading health care companies like GlaxoSmithKline plc (GSK - Free Report) and Biogen Inc. (BIIB - Free Report) continue to validate its antisense technology and provide the company with funds in the form of upfront, milestone and other payments. At the upcoming earnings call, focus will be on the company’s progress with late-stage pipeline candidates. (Read more: Ionis Q3 Earnings: What's in the Cards for the Stock?)

IONIS PHARMACT Price and EPS Surprise

 

IONIS PHARMACT Price and EPS Surprise | IONIS PHARMACT Quote

Seattle, WA based Juno Therapeutics Inc. (JUNO - Free Report) will be reporting third-quarter results after the market closes. The company is one of the major players in the field of T-cell-based immunotherapy and has pipeline candidates like JCAR015, JCAR017 and JCAR014 that use the CAR T cell technology to target CD19 a protein expressed on the surface of almost all B cell leukemias and lymphomas. It has collaborations with companies like Celgene for the global development and commercialization of immunotherapies. With no approved products in its portfolio, the company does not generate any product revenue yet. Thus, focus will be on its cash burn and pipeline updates.

The company has had a poor track record, having missed estimates thrice in the last four quarters and meeting the same only once. The company recorded an average negative earnings surprise of 12.81% over the last four quarters. Juno currently has a Zacks Rank #3, which when combined with its 0.00% Earnings ESP, makes surprise prediction difficult. The Zacks Consensus Estimate for the quarter is pegged at a loss of 64 cents. (Will Juno Therapeutics Disappoint in Q3 Earnings?)

JUNO THERAPEUTC Price and EPS Surprise

 

JUNO THERAPEUTC Price and EPS Surprise | JUNO THERAPEUTC Quote

Impax Laboratories Inc. (IPXL - Free Report) , which has a presence in both the generics and branded markets, is scheduled to report third-quarter results before the market opens. The company’s track record has been quite encouraging, having delivered a positive surprise in two of the last four quarters and meeting the same in one quarter. Its average positive earnings surprise for the four trailing quarters is 1.78%. This Zacks Rank #2 (Buy) company has an Earnings ESP of -5.00%, which makes surprise prediction difficult for the quarter. The Zacks Consensus Estimate for the quarter is pegged at 40 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.

IMPAX LABORATRS Price and EPS Surprise

 

IMPAX LABORATRS Price and EPS Surprise | IMPAX LABORATRS Quote

Coherus Biosciences, Inc. (CHRS - Free Report) is a late-stage biologics platform company focused on the global biosimilar market. With no approved products in its portfolio, investor focus should be on pipeline updates by the company. Coherus’ track record has been disappointing so far, with the company surpassing expectations only once in the past three quarters with an average negative earnings surprise of 4.07%. Though the company’s Zacks Rank #3 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 a loss of $1.58. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

COHERUS BIOSC Price and EPS Surprise

 

COHERUS BIOSC Price and EPS Surprise | COHERUS BIOSC Quote

Stay tuned! Check later on our full write-up on earnings releases of these stocks.

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