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Drug/Biotech Stock Earnings on Feb 2: AMGN, PFE & CTLT

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Zacks Equity Research
·4 min read
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A few large pharma companies have already reported their fourth-quarter results. Johnson & Johnson JNJ and Eli Lilly surpassed estimates for both earnings and sales in the fourth quarter of 2020, while Swiss pharma giant Novartis missed estimates for both.

Per the Zacks classification, the pharma/biotech industry comes under the broader Medical sector, which comprises pharma/biotech as well as medical device companies.

Per the Earnings Trends report as of Jan 27, 10.9% of the companies in the Medical sector, constituting nearly 28.8% of the sector’s market capitalization, reported earnings. 83.3% of the companies managed to surpass estimates for both earnings and sales. Earnings decreased 7% year over year on 11% higher revenues. Overall, fourth-quarter earnings for the Medical sector are expected to rise 8.2% on 11.4% sales increase.

Let’s analyze the three drug/biotech companies that are set to report earnings results on Feb 2.

Pfizer Inc. PFE

The drug giant’s performance has been mixed with the company exceeding earnings expectations in three of the last four quarters, while missing the same in one. The company has delivered an earnings surprise of 8.48% in the past four quarters, on average.

Our proven model does not conclusively predict an earnings beat for Pfizer this time around. 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. But that is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Pfizer Inc. Price and EPS Surprise

Pfizer Inc. Price and EPS Surprise
Pfizer Inc. Price and EPS Surprise


Pfizer Inc. price-eps-surprise | Pfizer Inc. Quote

Pfizer has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for earnings stands at 45 cents per share.

Investors will be keen to know about sales of Pfizer’s key brands, Eliquis, Ibrance and Inlyta, and contributions from new drug Vyndaqel/Vyndamax in the fourth-quarter earnings call. Also, Pfizer and partner BioNTech successfully developed BNT162b2, a two-shot vaccine for COVID-19, which is now approved for emergency/temporary use in several countries. The vaccine sales are likely to have added to revenues in the fourth quarter.

Amgen Inc. AMGN

The large biotech’s performance has been pretty impressive, with earnings beating estimates in each of the trailing four quarters. The company delivered a four-quarter earnings surprise of 11.65%, on average.

Amgen has an Earnings ESP of +0.03% and a Zacks Rank #3, indicating a likely earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

Our previous article showed that Amgen did not have the favorable combination to beat on earnings in the soon-to-be-reported quarter. However, estimates have changed thereafter and we are more certain of a beat now.

Amgen Inc. Price and EPS Surprise

Amgen Inc. Price and EPS Surprise
Amgen Inc. Price and EPS Surprise


Amgen Inc. price-eps-surprise | Amgen Inc. Quote

The Zacks Consensus Estimate for earnings stands at $3.36 per share per share.

The recovery from the peak impact of the COVID-19 pandemic is expected to have continued in the fourth quarter of 2020. However, the resurgence in COVID-19 infection rates is likely to have acted as a headwind this time around.

Biosimilars may have once again been an important contributor to top-line growth of Amgen while increasing generic competition for its legacy products are likely to have hurt the top line.

Catalent, Inc. CTLT

The company exceeded earnings expectations in three of the last four quarters while meeting the same in one. Catalent has delivered an earnings surprise of 5.59% in the past four quarters, on average.

Catalent has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for earnings stands at 56 cents per share. The company will report earnings results for second quarter of fiscal year 2021 ended Dec 31, 2020.

Catalent, Inc. Price and EPS Surprise

Catalent, Inc. Price and EPS Surprise
Catalent, Inc. Price and EPS Surprise


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

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Johnson & Johnson (JNJ) : Free Stock Analysis Report

Pfizer Inc. (PFE) : Free Stock Analysis Report

Amgen Inc. (AMGN) : Free Stock Analysis Report

Catalent, Inc. (CTLT) : Free Stock Analysis Report

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Zacks Investment Research