5 Biotech Stocks Set to Outpace Q3 Earnings Estimates
The third-quarter 2023 reporting cycle of the Medical sector has just started. The sector primarily comprises pharma/biotech and medical device companies.
The earnings season for the Medical sector kicked off this week when pharma giant J&J posted earnings results. J&J’s earnings and sales beat estimates on both counts. The company’s Innovative Medicines segment (previously the Pharmaceutical segment) outperformed expectations. J&J raised its full-year guidance for adjusted earnings and sales growth.
The Earnings Trends report indicates that as of Oct 11, overall third-quarter earnings of the Medical sector are expected to decline by 12.2%. Sales are expected to increase by 5.0%, each from the year-ago quarter’s respective reported figures.
Zeroing in on Winners
We have highlighted five biotech companies — Amgen AMGN, Biogen BIIB, GSK GSK, Prothena Corporation PRTA and Vertex Pharmaceuticals VRTX — that are expected to deliver a beat 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 the chance of an earnings surprise for stocks with this combination is as high as 70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
5 Biotech Stocks That Match the Criteria
Amgen
One of the biggest biotech companies in the world, Amgen has a strong presence in the oncology/hematology, cardiovascular disease, neuroscience, inflammation, bone health and nephrology and neuroscience markets. The company has an Earnings ESP of +1.65% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter earnings stands at $4.64 per share.
Amgen beat earnings estimates in each of the last four quarters, delivering a trailing four-quarter earnings surprise of 5.90% on average. AMGN is scheduled to report earnings on Oct 31, before the opening bell.
Amgen Inc. Price and EPS Surprise
Amgen Inc. price-eps-surprise | Amgen Inc. Quote
Biogen
A leading biotech company, Biogen focuses on developing innovative therapies for treating severe neurological and neurodegenerative diseases. The company has an Earnings ESP of +6.99% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter earnings is pegged at $3.99 per share.
Biogen beat earnings estimates in each of the last four quarters, delivering a trailing four-quarter earnings surprise of 10.53% on average. BIIB is scheduled to report earnings on Nov 8, before the opening bell.
Biogen Inc. Price and EPS Surprise
Biogen Inc. price-eps-surprise | Biogen Inc. Quote
GSK
A global biopharmaceutical company, GSK boasts a diversified base and presence in different geographical areas. GSK has an Earnings ESP of +6.79% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.07 per share.
GSK beat earnings estimates in each of the last four quarters, delivering a trailing four-quarter earnings surprise of 12.40% on average. GSK is scheduled to report earnings on Nov 1, before market open.
GSK PLC Sponsored ADR Price and EPS Surprise
GSK PLC Sponsored ADR price-eps-surprise | GSK PLC Sponsored ADR Quote
Prothena Corporation
Prothena is a late-stage clinical-stage company with a promising pipeline of investigational therapeutics for neurodegenerative and rare peripheral amyloid diseases. The company has an Earnings ESP of +57.92% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter earnings is pegged at a loss of 26 cents per share.
Prothena missed estimates in three of the last four quarters while beating the mark on one occasion. The company has delivered a negative earnings surprise of 28.34% on average. PRTA is expected to release earnings early in the next month.
Prothena Corporation plc Price and EPS Surprise
Prothena Corporation plc price-eps-surprise | Prothena Corporation plc Quote
Vertex Pharmaceuticals
Vertex is focused on discovering, developing and commercializing small molecule drugs targeting serious diseases. The company’s main area of focus is cystic fibrosis (CF). The company has an Earnings ESP of +1.25% and a Zacks Rank of 3. The Zacks Consensus Estimate for the third quarter is pegged at $3.94 per share.
Vertex Pharmaceuticals beat estimates in each of the last four quarters, delivering an average earnings surprise of 4.91%. VRTX is scheduled to release results on Nov 6, after market close.
Vertex Pharmaceuticals Incorporated Price and EPS Surprise
Vertex Pharmaceuticals Incorporated price-eps-surprise | Vertex Pharmaceuticals Incorporated Quote
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GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report
Biogen Inc. (BIIB) : Free Stock Analysis Report
Amgen Inc. (AMGN) : Free Stock Analysis Report
Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report
Prothena Corporation plc (PRTA) : Free Stock Analysis Report
