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4 Biotech Stocks Likely to Outpace Q3 Earnings Estimates

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Key Takeaways

  • Gilead, Bristol Myers, and Biogen topped Q3 estimates and some raised revenue guidance for 2025.
  • ZYME, NKTR, ANIP, and PCRX have positive Earnings ESPs and solid Zacks Ranks ahead of Q3 reports.
  • Medical sector Q3 earnings seen down 2.9%, while revenues are projected to rise 9.1%.

The third-quarter earnings season is in full swing at present. The scorecard for the Medical sector is pretty good so far. The sector primarily comprises pharma/biotech and medical device companies.

Per the Earnings Trends report, as of Oct. 29, 35% of the companies in the Medical sector, constituting nearly 41.5% of the sector’s market capitalization, reported earnings. While 90.5% beat on earnings, 81% beat on sales. Earnings declined 9.4% year over year but revenues increased 10.7%. Overall, third-quarter earnings for the Medical sector are expected to decline 2.9% while sales are projected to increase 9.1%.

Quite a few bigwigs from the biotech sector reported quarterly results last week. Among these, Gilead Sciences posted better-than-expected third-quarter 2025 results and lifted the lower end of its product sales guidance. Bristol Myers also posted better-than-expected results, driven by higher demand for growth portfolio drugs. Consequently, the revenue guidance was raised to reflect this performance.

Biogen too reported better-than-expected figures, driven by robust sales growth of new drugs like Leqembi, Skyclarys and Zurzuvae, and raised its total revenue guidance for 2025. However, Biogen lowered its adjusted earnings per share guidance to reflect expected R&D and deal-related costs tied to its pending business development transactions.

Zeroing in on Winners

Even though some of the bigwigs from the biotech sector have already announced results, there are many companies that are yet to report. Some of them seem poised to surpass estimates for the quarter. Here, we have highlighted four biotech companies, which are expected to deliver an earnings surprise in their upcoming quarterly results.

Earnings ESP is our proprietary methodology for determining the stocks with the best chance to deliver an earnings surprise. Earnings ESP shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. The selection can be made with the help of the Zacks Stock Screener.

Our research shows that for stocks with this combination, the chance of an earnings surprise is as high as 70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.    

4 Biotech Stocks That Match the Criteria

Zymeworks (ZYME - Free Report) , a clinical-stage biotechnology, is developing a diverse pipeline of novel, multifunctional biotherapeutics to improve the standard of care for difficult-to-treat diseases, including cancer, inflammation, and autoimmune disease. The company’s first internally developed product candidate, zanidatamab, is a novel bispecific antibody that targets two distinct domains of the human epidermal growth factor receptor 2 (HER2). ZYME has entered into separate agreements with BeOne Medicines Ltd. and Jazz Pharmaceuticals Ireland Limited (a subsidiary of Jazz Pharmaceuticals plc), granting exclusive rights to each of them to develop and commercialize zanidatamab in different territories.

ZYME has an Earnings ESP of +2.22% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Zymeworks Inc. Price, Consensus and EPS Surprise

Zymeworks Inc. Price, Consensus and EPS Surprise

Zymeworks Inc. price-consensus-eps-surprise-chart | Zymeworks Inc. Quote

The Zacks Consensus Estimate for third-quarter loss per share is pegged at 30 cents. ZYME is scheduled to report third-quarter earnings on Nov. 6, 2025. The stock has gained 30.4% so far this year.

Nektar Therapeutics (NKTR - Free Report) is a clinical stage company, developing treatments to address the underlying immunological dysfunction in autoimmune and chronic inflammatory diseases. NKTR’s lead product candidate, rezpegaldesleukin (REZPEG, or NKTR-358), is being evaluated in two phase IIb studies — atopic dermatitis and alopecia areata. It is also being evaluated in one phase II study in type 1 diabetes mellitus. The pipeline progress has been encouraging and Rezpeg met the key goals in the atopic dermatitis study. Nektar, together with various partners, is also developing another candidate, NKTR-255, for oncological indications.

NKTR has an Earnings ESP of +18.72% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter loss per share is pegged at $2.85. NKTR is scheduled to report third-quarter earnings on Nov. 6, 2025. The stock has skyrocketed 365.7% so far this year.

Nektar Therapeutics Price, Consensus and EPS Surprise

Nektar Therapeutics Price, Consensus and EPS Surprise

Nektar Therapeutics price-consensus-eps-surprise-chart | Nektar Therapeutics Quote

ANI Pharmaceuticals (ANIP - Free Report) is a diversified biopharmaceutical company, developing, manufacturing, and marketing high-quality novel products in the areas of ophthalmology, rheumatology, nephrology, neurology and pulmonology. The performance of Purified Cortrophin Gel has been strong on the back of a record number of new patient starts and new cases initiated. The acquisition of Alimera Sciences, Inc., in 2024 added a growing and durable franchise, Iluvien for (diabetic macular edema) and Yutiq (for the treatment of non-infectious uveitis affecting the posterior segment of the eye) to its portfolio. ANIP has a presence in the generics market as well.

ANI Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

ANI Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

ANI Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | ANI Pharmaceuticals, Inc. Quote

Shares of this Zacks Rank 2 company have surged 63.9% so far this year. ANIP has an Earnings ESP of +10.55%.  The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $211.3 million, while the same for earnings is pinned at $1.74 per share. ANIP is scheduled to report third-quarter earnings on Nov. 7, 2025.

Pacira BioSciences, Inc. (PCRX - Free Report) lead drug, Exparel, is indicated in patients aged six years and older for single-dose infiltration to produce postsurgical local analgesia. It is also indicated for regional analgesia in adults via an interscalene brachial plexus nerve block, sciatic nerve block in the popliteal fossa and femoral nerve block in the adductor canal. The acquisition of MyoScience also added iovera, a hand-held medical device used to deliver a precise, controlled application of cold temperature to targeted nerves, to Pacira’s portfolio. The acquisition of Flexion Therapeutics in 2021 gave Pacira another marketed product, Zilretta.

Pacira BioSciences, Inc. Price, Consensus and EPS Surprise

Pacira BioSciences, Inc. Price, Consensus and EPS Surprise

Pacira BioSciences, Inc. price-consensus-eps-surprise-chart | Pacira BioSciences, Inc. Quote

PCRX has an Earnings ESP of +2.68% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter earnings per share is pinned at 65 cents. PCRX is scheduled to report third-quarter earnings on Nov. 6, 2025. The stock has gained 13.5% so far this year. 

 

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