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Drug/Biotech Stock Q2 Earnings on Aug 9: PRGO, BDSI & More

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The second-quarter reporting cycle is coming to an end. Though the quarterly results were marked by all around positive surprises and plenty of momentum on the revenue side, the downtrend in earnings estimate revisions for the current period (third quarter 2018) is a concern.

As of Aug 2, 381 S&P 500 members, accounting for 82.7% of the index’s total market capitalization, reported results, according to the latest Earnings Preview.

Total earnings of these 381 index members were up 25% from the year-ago quarter on a 10.4% improvement in revenues, with the beat ratio being 80.1% for earnings and 73.8% for revenues.

Per the report, total earnings of S&P 500 companies in the second quarter are expected to grow 23.9% year over year on 9.3% higher revenues.

Please note that the broader Medical sector (includes drug, biotech as well as Medical Device companies) is expected to record year-over-year growth of 7.2% in revenues and 15.1% in earnings in the second quarter.

Several companies including S&P 500 component, Perrigo Company plc (PRGO - Free Report) , are set to report second-quarter results on Aug 9. Let's see how things are shaping up for their announcements.

Perrigo Company

Perrigo, which is scheduled to release earnings before market open, delivered a positive earnings surprise of 10.53% last quarter. Perrigo’s earnings history has been quite impressive with the company surpassing expectations in all the last four quarters, delivering an average beat of 17.14%.

For this quarter, Perrigo has an Earnings ESP of -4.95% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate is pegged at $1.21 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Perrigo’s new product acquisitions and launches in the Prescription Pharmaceuticals (Rx) segment are expected to boost sales in the second quarter. Also, the ongoing restructuring initiatives and operating expense discipline are anticipated to provide bottom-line support. (Read more: What's in the Cards for Perrigo This Earnings Season?).

BioDelivery Sciences International, Inc. (BDSI - Free Report)

BioDelivery Sciences is scheduled to announce results after market close. BioDelivery’s earnings performance has been a mixed bag over the trailing four quarters. While the company surpassed expectations in two of the last four quarters, it missed the same on the other two occasions, delivering an average negative surprise of 3.38%. In the last reported quarter, the company outpaced the Zacks Consensus Estimate with a positive earnings surprise of 21.74%.

The company has an Earnings ESP of +8.60% and a Zacks Rank #2 (Buy), indicating a likely positive surprise. The Zacks Consensus Estimate is pegged at a loss of 19 cents per share. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

On the second quarter earnings call, investors will be keen to know if the improving trend seen in prescription volumes of BioDelivery’s chronic pain drug, Belbuca, in the first quarter continues in the second quarter. Bunavail sales have remained flat over the past couple of quarters and we expect this trend to continue. (Read more: Is a Beat in Store for BioDelivery in Q2 Earnings?)

Puma Biotechnology, Inc. (PBYI - Free Report)

Puma Biotechnology is also expected to report after market close

The company’s earnings history has been impressive so far, having topped expectations in all the previous four quarters with an average beat of 58.87%. In the last reported quarter, the company trumped the Zacks Consensus Estimate, coming up a positive surprise of 102.67%.

The company has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate is pegged at a loss of $1.26 per share.

On Puma Biotechnology’s second-quarter 2018 conference call, investor focus will be on the sales of its only marketed drug, Nerlynx. (Read more: What's in the Cards for Puma Biotech in Q2 Earnings?)

Loxo Oncology, Inc. (LOXO - Free Report)

Loxo Oncology is scheduled to announce results before market open.

Loxo Oncology’s earnings performance has been a mixed bag over the trailing four quarters. While the company surpassed expectations in two of the last four quarters, it missed the same on the other two occasions, delivering an average negative surprise of 391.21%. In the last reported quarter, the company delivered a massive negative earnings surprise of 1625.0%.

The company has an Earnings ESP of 0.00% and a Zacks Rank #2. The Zacks Consensus Estimate for the soon-to-be reported quarter is pegged at 12 cents per share.

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