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Analyst Blog

The bulk of the Q3 earnings season is over, with 423 S&P 500 members (as of Nov 4) – accounting for 87.1% of the index’s total market capitalization – having already reported results, according to the latest Earnings Preview.

While total earnings for these index members were up 3.6% from the year-ago quarter, revenues were also up 2.4% year over year. The beat ratio was 72.8% for earnings and 55.1% for revenues.

Notably, earnings growth for this quarter is on track to be positive, after five consecutive quarters of earnings decline for the S&P 500 index. Moreover, the positive growth has arrived ahead of schedule as it was expected to show up in the last quarter of the year. Also, the quarter has seen a greater number of positive surprises and only modest negative revisions to Q4 estimates.

However, since last week, positive surprises, particularly on the revenue side, have been harder to come by and Q4 estimates have started coming down. Nonetheless, the pace of negative revisions still compares favorably with past trends.

This trend 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, three large pharma companies that have reported so far this week – Allergan plc’s (AGN - Free Report) , Gilead Sciences Inc. (GILD - Free Report) and Pfizer Inc. (PFE - Free Report) – announced softer-than-expected results. While Allergan and Pfizer missed estimates for both earnings and sales, Gilead’s earnings fell short of expectations while revenues just about surpassed.

Three more companies from the healthcare sector are set to report their third-quarter results on Nov 10. Let's see how things are shaping up for their respective announcements.

AveXis, Inc. (AVXS - Free Report)

Avexis is scheduled to report results before the opening bell. The company posted a positive surprise of 11.69% in the last reported quarter. Avexis’ performance has been far from encouraging, with earnings missing estimates twice while surpassing the same in one out of the three trailing quarters. This resulted in an average negative earnings surprise of 199.13%.

AVEXIS INC Price and EPS Surprise

 

AVEXIS INC Price and EPS Surprise | AVEXIS INC Quote

The Zacks Consensus Estimate for the quarter is pegged at a loss of 70 cents per share. The company has a Zacks Rank #2 (Buy) and an Earnings ESP of +11.43%, indicating a likely positive surprise. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Blueprint Medicines Corporation (BPMC - Free Report)

Blueprint Medicinesis scheduled to report results before the market opens. The company posted a positive surprise of 4.11% in the last reported quarter. Blueprint Medicines’performance has been encouraging, with earnings beating estimates thrice and missing in one out of the four trailing quarters. The company has an average positive earnings surprise of 5.43% for the trailing four quarters.

BLUEPRINT MED Price and EPS Surprise

 

BLUEPRINT MED Price and EPS Surprise | BLUEPRINT MED Quote

The Zacks Consensus Estimate for the quarter is pegged at a loss of 77 cents per share. The company has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter . 

Global Blood Therapeutics, Inc. (GBT - Free Report)

Global Blood Therapeutics delivered in-line earnings last quarter. The company delivered positive earnings surprises in three of the last four quarters, with the average positive earnings surprise being 5.54%.

GLOBAL BLD THER Price and EPS Surprise

 

GLOBAL BLD THER Price and EPS Surprise | GLOBAL BLD THER Quote

The Zacks Consensus Estimate for the quarter is pegged at a loss of 59 cents per share. The company has a Zacks Rank #2 and an Earnings ESP of 16.95%, indicating a likely positive surprise.

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