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We have already crossed the halfway mark of the second-quarter reporting cycle. The earning season has shown broad-based growth with record earnings this quarter.

As of Jul 28, 2017, 286 S&P 500 members, accounting for 68.8% of the index’s total market capitalization, reported results, according to Earnings Preview. Of these, 57.7% companies beat both on both counts compared with 55.6% in the first quarter.

Total earnings for these 286 index members were up 11.3% from the year-ago quarter on a 6.1% improvement in revenues. The beat ratio was 74.5% for earnings and 69.2% for revenues. The Medical segment has also performed well so far with earnings up 6% on 4.7% increase in revenues.

Per the report, total earnings for S&P 500 companies in the second quarter are expected to grow 9.2% year over year on 5% higher revenues. With plenty of results still to come, the actual earnings growth this quarter may exceed the 10% mark. This follows 13.3% earnings growth in the first quarter on 7% increase in revenues, the highest in almost two years.

Johnson & Johnson (JNJ - Free Report) began the earnings season for the pharma sector with mixed second-quarter results. Performance of Novartis (NVS - Free Report) , Lilly (LLY - Free Report) and Biogen Inc. (BIIB - Free Report) were encouraging as the companies beat both earnings and revenue estimates. Lilly and Biogen also raised their earnings and revenue estimates for 2017. Among other pharma bigwigs which reported last week, AbbVie Inc. (ABBV - Free Report) reported better-than-expected results with both earnings and sales surpassing expectations. Its lymphoma drug, Imbruvica recorded record growth. Merck & Co., Inc. (MRK - Free Report) also beat estimates for both earnings and sales in the second quarter mainly backed by strong sales of PD-1 inhibitor, Keytruda.

Let’s take a look at three pharma/biotech companies that are set to report second-quarter results on Aug 1. Let's see how things are shaping up for this quarter.

Pfizer Inc. (PFE - Free Report)

Pfizer, which is scheduled to release earnings before the opening bell, delivered a positive earnings surprise of 2.99% last quarter. Pfizer’s earnings performance has been mixed with earnings missing expectations in two of the last four quarters and beating the same twice, resulting in an average negative surprise of 0.35%.

For this quarter, Pfizer has an Earnings ESP of +1.54% and a Zacks Rank #3 (Hold), indicating a likely beat. The Zacks Consensus Estimate is pegged at 65 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Pfizer, Inc. Price and EPS Surprise

Pfizer, Inc. Price and EPS Surprise | Pfizer, Inc. Quote

New products like Xeljanz (rheumatoid arthritis) and Ibrance (breast cancer) as well as older products like Lyrica (neuropathic pain) and Eliquis (blood thinner) are likely to contribute to the top line meaningfully. (Read More: Is a Beat in the Cards for Pfizer  in Q2 Earnings?).

Aerie Pharmaceuticals, Inc. (AERI - Free Report)

Aerie Pharma is scheduled to announce results after the closing bell. Aerie Pharma has missed estimates in each of the past four quarters and has an average negative earnings surprise of 17.07%.

The company has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

With no approved product in its portfolio, Aerie depends heavily on its late-stage candidates-Rhopressa and Roclatan. Aerie has submitted regulatory application for Rhopressa in the U.S. and expects to submit the same in the EU in the second half of 2017. Hence, we expect investor focus to remain on pipeline updates. (Read More: What's in the Cards for Aerie This Earnings Season?)

Incyte Corporation (INCY - Free Report)

The company is expected to report before market opens. Incyte delivered an earnings surprise of 1.03% last quarter. Incyte’s performance has been pretty impressive, with the company reporting positive surprise consistently. The average earnings beat over the last four quarters is 336.06%.

The company has an Earnings ESP of -37.5% and a Zacks Rank #3. The Zacks Consensus Estimate is pegged at a loss of 8 cents per share.

Incyte Corporation Price and EPS Surprise

Incyte Corporation Price and EPS Surprise | Incyte Corporation Quote

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