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Drug/Biotech Stocks Nov 5 Earnings Roster: AGN, REGN & More

Zacks Equity Research

The Medical sector (comprises pharma/biotech and medical device companies) has performed well so far in the third-quarter reporting cycle. Per the Earnings Trends report, as of Oct 31, 67.9% of total companies in the Medical sector, constituting nearly 79.7% of the sector’s market capitalization, reported earnings. Out of these, 80.6% beat on earnings and 86.1% surpassed revenue estimates, resulting in a blended beat of 72.2%. Earnings are up 7.1% year over year and sales are up 8.2% year over year.

Overall, third-quarter earnings and sales growth for this sector is expected to be 5.9% and 7%, respectively.

Several big drug/biotech companies like Eli Lilly, Novartis, GlaxoSmithKline GSK, Biogen, Amgen AMGN and Gilead Sciences, among others, have reported third-quarter results so far.

Glaxo, Biogen and Amgen beat on both earnings and sales, while Lilly beat estimates for third-quarter earnings but missed the same for sales. Gilead Sciences’ earnings missed the consensus mark, while sales managed to marginally top the same.

Let’s take a look at five pharma/biotech companies that are set to report quarterly results on Nov 5.

What the Model Suggests

The proven Zacks model predicts an earnings beat for stocks with a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).  You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Allergan plc AGN, which has an impressive track record so far, will release third-quarter results. The company delivered a positive earnings surprise of 0.92% in the last reported quarter. Moreover, it beat on earnings in the last four quarters, the average being 4.26%.

For the quarter to be reported, Allergan has an Earnings ESP of +2.51% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for earnings stands at $4.25 per share.

Key products like Botox (both cosmetic and therapeutic), Juvéderm collection of fillers, Vraylar, Ozurdex and Lo Loestrin are likely to have driven sales in the third quarter. However, loss of exclusivity on some brands, divestitures of some brands in 2018 and lower sales of textured breast implants due to a global recall might have hurt sales.  (Read more: Will Allergan Beat Estimates This Earnings Season?)

Allergan plc Price, Consensus and EPS Surprise

 

Allergan plc Price, Consensus and EPS Surprise

Allergan plc price-consensus-eps-surprise-chart | Allergan plc Quote

Regeneron Pharmaceuticals, Inc. REGN is scheduled to release third-quarter 2019 results before the opening bell. In the last reported quarter, the company beat earnings expectations by 11.07%. It surpassed earnings estimates by average of 6.14% in the last four quarters.

For the quarter to be reported, Regeneron has an Earnings ESP of +4.41% and a Zacks Rank #3. The Zacks Consensus Estimate for earnings stands at $6.35 per share.

Label expansion of key drug, Eylea, and asthma drug, Dupixent, drove performance in the first half of 2019, a trend that most likely continued in the third quarter. Libtayo too is expected to have contributed to third-quarter sales owing to geographical expansion. (Read more: Is a Beat in the Cards for Regeneron in Q3 Earnings?).

Regeneron Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

 

Regeneron Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

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

Generic drugmaker Mylan N.V. MYL is scheduled to report third-quarter 2019 results, before market open.

The company’s performance has been mixed so far, with earnings beating estimates in three of the trailing four quarters by average of 4.20%. In the last reported quarter, the company’s earnings beat estimates by 8.42%.

For the quarter to be reported, Mylan has an Earnings ESP of +0.70 and a Zacks Rank #3. The Zacks Consensus Estimate for earnings stands at $1.14 per share.

Third-quarter earnings most likely benefited from new product sales in North America and Europe and countered challenging business conditions in the United States. (Read more: Mylan to Report Q3 Earnings: What's in the Offing?)

Mylan N.V. Price, Consensus and EPS Surprise

 

Mylan N.V. Price, Consensus and EPS Surprise

Mylan N.V. price-consensus-eps-surprise-chart | Mylan N.V. Quote

Catalent, Inc. CTLT is scheduled to report fiscal first-quarter 2020 results, before market open.

The company’s performance has been mixed so far, with earnings beating estimates in three of the trailing four quarters by average of 9.11%. In the last reported quarter, the company’s earnings beat estimates by 9.38%. For the quarter to be reported, Catalent has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for earnings stands at 24 cents per share.

Catalent, Inc. Price, Consensus and EPS Surprise

 

Catalent, Inc. Price, Consensus and EPS Surprise

Catalent, Inc. price-consensus-eps-surprise-chart | Catalent, Inc. Quote

Jazz Pharmaceuticals plc JAZZ is scheduled to report third-quarter 2019 results, after market close.

In the last reported quarter, the company beat earnings expectations by 13.45%. It surpassed earnings estimates by average of 14.81% in the last four quarters.

For the quarter to be reported, Jazz has an Earnings ESP of +1.70% and a Zacks Rank #2. The Zacks Consensus Estimate for earnings stands at $3.59 per share.

Jazz’s key drug, Xyrem, along with other products in its portfolio has likely driven performance in the third quarter.

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Allergan plc (AGN) : Free Stock Analysis Report
 
GlaxoSmithKline plc (GSK) : Free Stock Analysis Report
 
Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report
 
Amgen Inc. (AMGN) : Free Stock Analysis Report
 
Jazz Pharmaceuticals PLC (JAZZ) : Free Stock Analysis Report
 
Catalent, Inc. (CTLT) : Free Stock Analysis Report
 
Mylan N.V. (MYL) : Free Stock Analysis Report
 
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