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5 Drug/Biotech Stocks Likely to Outperform Q4 Earnings Estimates
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The fourth-quarter 2025 reporting cycle for the Medical sector is about to pick up pace this week, as most firms are slated to share their earnings results over the next two weeks. The sector mainly comprises pharma/biotech and medical device companies. The earnings season for the drug and biotech sector kicked off in late January when bellwether Johnson & Johnson reported strong fourth-quarter results, beating estimates for earnings and sales. While most of the pharma bigwigs are slated to report their earnings results this week, Roche’s 2025 results were weighed down by unfavorable foreign-exchange movements, as weakness in the U.S. dollar adversely impacted international sales. On the other hand, Sanofi, which reported fourth-quarter results last week, delivered mixed performance, beating earnings estimates while slightly missing sales expectations.
Per the Earnings Trends report, as of Jan. 28, 11.7% of the companies in the Medical sector — representing 26% of the sector’s market capitalization — reported quarterly earnings. Among the companies that reported fourth-quarter earnings, 42.9% of them beat both earnings and revenue estimates. Earnings decreased 15.5% year over year, while revenues increased 10.3%.
Overall, fourth-quarter earnings of the Medical sector are expected to decrease 2.4%, while sales are projected to rise 8.7% from the year-ago quarter.
Zeroing in on Winners
Here, we have highlighted five drug/biotech companies — Zoetis (ZTS - Free Report) , Pacira BioSciences (PCRX - Free Report) , Apellis Pharmaceuticals (APLS - Free Report) , Acadia Pharmaceuticals (ACAD - Free Report) and Denali Therapeutics (DNLI - Free Report) — that are expected to deliver a beat in their upcoming quarterly results.
Earnings ESP is our proprietary methodology for determining the stocks that have the best chance of delivering 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 done 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.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.40 per share, while that for revenues is pinned at $2.37 billion. Zoetis is set to release results on Feb. 12, before the opening bell.
ZTS beat estimates in each of the last four quarters, delivering an average surprise of 5.37%.
Zoetis’ fourth-quarter revenues are likely to have been supported by growth in companion animal product sales in both the U.S. and International segments. Performance was driven by strong demand for the company’s flea, tick, and heartworm combination therapy for dogs, Simparica Trio, along with continued momentum in its key dermatology brands, Apoquel and Cytopoint. However, ZTS’ monoclonal antibody products for osteoarthritis (OA) pain, Librela for dogs and Solensiafor cats, are likely to have posted a decline in sales in the U.S. segment due to fears of side effects in some dogs.
Brisbane, CA-based Pacira BioSciences has an Earnings ESP of +7.38% and a Zacks Rank #2 at present.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 85 cents per share, while that for revenues is pinned at $196.99 million. Pacira BioSciences is expected to report earnings results soon.
PCRX beat estimates in each of the last four quarters, delivering an average surprise of 6.26%.
Pacira BioSciences’ revenues in the fourth quarter are likely to have been driven by growing sales of its flagship pain-management product, Exparel, across all its approved indications. Sales of its other products, OA knee pain drug, Zilretta and iovera medical device are expected to have increased in the to-be-reported quarter, contributing to the top-line growth.
Waltham, MA-based Apellis Pharmaceuticals has an Earnings ESP of +4.52% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for fourth-quarter loss is pegged at 41 cents per share, while that for revenues is pinned at $194.37 million. Apellis Pharmaceuticals is expected to report earnings results soon.
APLS beat estimates in three of the last four quarters while missing the mark on the remaining occasion, with the average surprise being 1.81%.
Apellis Pharmaceuticals’ revenues are likely to have been primarily boosted by the sales of its geographic atrophy drug, Syfovre, in the fourth quarter of 2025. Growing sales of its other marketed drug, Empaveli, across all its approved indications, are expected to have contributed to the top line.
San Diego, CA-based Acadia Pharmaceuticals has an Earnings ESP of +14.92% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 12 cents per share, while that for revenues is pinned at $292.64 million. Acadia Pharmaceuticals is expected to report earnings results soon.
ACAD beat estimates in three of the last four quarters while missing the mark on the remaining occasion, with the average surprise being 24.87%.
Acadia Pharmaceuticals’ revenues in the fourth quarter are likely to have been driven by the growing sales volume of its lead drug, Nuplazid, approved in the United States for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis. Sales growth of ACAD’s second product, Daybue, approved for treating Rett syndrome, is likely to have contributed to the top line.
Based in South San Francisco, Denali Therapeutics presently has an Earnings ESP of +6.11% and a Zacks Rank #3.
The Zacks Consensus Estimate for fourth-quarter loss is pegged at 75 cents per share, while that for revenues is pinned at $18.47 million. Denali Therapeutics is expected to report its fourth-quarter results soon.
DNLI beat estimates in three of the last four quarters while missing the mark on the remaining occasion, delivering an average surprise of 3.69%.
Denali currently has no marketed products in its commercial portfolio. The revenue estimate for the to-be-reported quarter reflects expectations regarding the collaboration revenues recognized in this reporting cycle. DNLI is most likely to share updates regarding its pipeline programs when it reports fourth-quarter results, especially regarding the regulatory timeline of its lead candidate, tividenofusp alfa, for the treatment of Hunter syndrome (MPS II). An application seeking the accelerated approval of tividenofusp alfa is currently under review by the FDA, with a final decision expected on Apr. 5, 2026. The company expects 2026 to mark the first commercial validation of its platform.
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5 Drug/Biotech Stocks Likely to Outperform Q4 Earnings Estimates
The fourth-quarter 2025 reporting cycle for the Medical sector is about to pick up pace this week, as most firms are slated to share their earnings results over the next two weeks. The sector mainly comprises pharma/biotech and medical device companies. The earnings season for the drug and biotech sector kicked off in late January when bellwether Johnson & Johnson reported strong fourth-quarter results, beating estimates for earnings and sales. While most of the pharma bigwigs are slated to report their earnings results this week, Roche’s 2025 results were weighed down by unfavorable foreign-exchange movements, as weakness in the U.S. dollar adversely impacted international sales. On the other hand, Sanofi, which reported fourth-quarter results last week, delivered mixed performance, beating earnings estimates while slightly missing sales expectations.
Per the Earnings Trends report, as of Jan. 28, 11.7% of the companies in the Medical sector — representing 26% of the sector’s market capitalization — reported quarterly earnings. Among the companies that reported fourth-quarter earnings, 42.9% of them beat both earnings and revenue estimates. Earnings decreased 15.5% year over year, while revenues increased 10.3%.
Overall, fourth-quarter earnings of the Medical sector are expected to decrease 2.4%, while sales are projected to rise 8.7% from the year-ago quarter.
Zeroing in on Winners
Here, we have highlighted five drug/biotech companies — Zoetis (ZTS - Free Report) , Pacira BioSciences (PCRX - Free Report) , Apellis Pharmaceuticals (APLS - Free Report) , Acadia Pharmaceuticals (ACAD - Free Report) and Denali Therapeutics (DNLI - Free Report) — that are expected to deliver a beat in their upcoming quarterly results.
Earnings ESP is our proprietary methodology for determining the stocks that have the best chance of delivering 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 done 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.
Zoetis
Parsippany, NJ-based Zoetis has an Earnings ESP of +0.84% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.40 per share, while that for revenues is pinned at $2.37 billion. Zoetis is set to release results on Feb. 12, before the opening bell.
ZTS beat estimates in each of the last four quarters, delivering an average surprise of 5.37%.
Zoetis’ fourth-quarter revenues are likely to have been supported by growth in companion animal product sales in both the U.S. and International segments. Performance was driven by strong demand for the company’s flea, tick, and heartworm combination therapy for dogs, Simparica Trio, along with continued momentum in its key dermatology brands, Apoquel and Cytopoint. However, ZTS’ monoclonal antibody products for osteoarthritis (OA) pain, Librela for dogs and Solensiafor cats, are likely to have posted a decline in sales in the U.S. segment due to fears of side effects in some dogs.
Zoetis Inc. Price and Consensus
Zoetis Inc. price-consensus-chart | Zoetis Inc. Quote
Pacira BioSciences
Brisbane, CA-based Pacira BioSciences has an Earnings ESP of +7.38% and a Zacks Rank #2 at present.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 85 cents per share, while that for revenues is pinned at $196.99 million. Pacira BioSciences is expected to report earnings results soon.
PCRX beat estimates in each of the last four quarters, delivering an average surprise of 6.26%.
Pacira BioSciences’ revenues in the fourth quarter are likely to have been driven by growing sales of its flagship pain-management product, Exparel, across all its approved indications. Sales of its other products, OA knee pain drug, Zilretta and iovera medical device are expected to have increased in the to-be-reported quarter, contributing to the top-line growth.
Pacira BioSciences, Inc. Price and Consensus
Pacira BioSciences, Inc. price-consensus-chart | Pacira BioSciences, Inc. Quote
Apellis Pharmaceuticals
Waltham, MA-based Apellis Pharmaceuticals has an Earnings ESP of +4.52% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for fourth-quarter loss is pegged at 41 cents per share, while that for revenues is pinned at $194.37 million. Apellis Pharmaceuticals is expected to report earnings results soon.
APLS beat estimates in three of the last four quarters while missing the mark on the remaining occasion, with the average surprise being 1.81%.
Apellis Pharmaceuticals’ revenues are likely to have been primarily boosted by the sales of its geographic atrophy drug, Syfovre, in the fourth quarter of 2025. Growing sales of its other marketed drug, Empaveli, across all its approved indications, are expected to have contributed to the top line.
Apellis Pharmaceuticals, Inc. Price and Consensus
Apellis Pharmaceuticals, Inc. price-consensus-chart | Apellis Pharmaceuticals, Inc. Quote
Acadia Pharmaceuticals
San Diego, CA-based Acadia Pharmaceuticals has an Earnings ESP of +14.92% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 12 cents per share, while that for revenues is pinned at $292.64 million. Acadia Pharmaceuticals is expected to report earnings results soon.
ACAD beat estimates in three of the last four quarters while missing the mark on the remaining occasion, with the average surprise being 24.87%.
Acadia Pharmaceuticals’ revenues in the fourth quarter are likely to have been driven by the growing sales volume of its lead drug, Nuplazid, approved in the United States for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis. Sales growth of ACAD’s second product, Daybue, approved for treating Rett syndrome, is likely to have contributed to the top line.
ACADIA Pharmaceuticals Inc. Price and Consensus
ACADIA Pharmaceuticals Inc. price-consensus-chart | ACADIA Pharmaceuticals Inc. Quote
Denali Therapeutics
Based in South San Francisco, Denali Therapeutics presently has an Earnings ESP of +6.11% and a Zacks Rank #3.
The Zacks Consensus Estimate for fourth-quarter loss is pegged at 75 cents per share, while that for revenues is pinned at $18.47 million. Denali Therapeutics is expected to report its fourth-quarter results soon.
DNLI beat estimates in three of the last four quarters while missing the mark on the remaining occasion, delivering an average surprise of 3.69%.
Denali currently has no marketed products in its commercial portfolio. The revenue estimate for the to-be-reported quarter reflects expectations regarding the collaboration revenues recognized in this reporting cycle. DNLI is most likely to share updates regarding its pipeline programs when it reports fourth-quarter results, especially regarding the regulatory timeline of its lead candidate, tividenofusp alfa, for the treatment of Hunter syndrome (MPS II). An application seeking the accelerated approval of tividenofusp alfa is currently under review by the FDA, with a final decision expected on Apr. 5, 2026. The company expects 2026 to mark the first commercial validation of its platform.
Denali Therapeutics Inc. Price and Consensus
Denali Therapeutics Inc. price-consensus-chart | Denali Therapeutics Inc. Quote