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Drug/Biotech Stock Earnings on Jul 28: PFE, GSK, BMY, BMRN & TLRY

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·5 min read
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A few large pharma companies have already reported their second-quarter 2021 results. Johnson & Johnson JNJ and Biogen BIIB surpassed estimates for both earnings and sales in the second quarter of 2021, while Swiss pharma giant Novartis NVS beat estimates for earnings but missed the same for sales. Both Johnson & Johnson and Biogen issued an upbeat guidance for 2021. On the other hand, Novartis provided a mixed 2021 outlook as its businesses show signs of recovery amid the coronavirus pandemic.

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 Jul 21, 9.1% of the companies in the Medical sector, constituting nearly 25.7% of the sector’s market capitalization, reported earnings. As of Jul 21, 2021, 100% of the companies managed to surpass estimates for both earnings and sales. Earnings increased 4.3% year over year on 18.3% higher revenues. Overall, second-quarter earnings for the Medical sector are expected to rise 16.7% on 16.3% sales increase.

Let’s analyze the five drug/biotech companies – Pfizer Inc. PFE, GlaxoSmithKline plc GSK, Bristol-Myers Squibb Company BMY, BioMarin Pharmaceutical Inc. BMRN and Tilray, Inc. TLRY — that are set to report earnings results on Jul 28.

Pfizer Inc.

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 a four-quarter earnings surprise of 8.44%, on average.

Our proven model predicts an earnings beat for Pfizer in the soon-to-be-reported quarter because it has the right combination of the two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Pfizer has an Earnings ESP of +2.33% and a Zacks Rank #3, thus indicating a likely earnings beat. The Zacks Consensus Estimate for earnings stands at 97 cents per share.

Pfizer’s sales in the second quarter are likely to have been driven by the COVID-19 vaccine it has developed with BioNTech – BNT162b2. Sales of BNT162b2 are expected to have been higher in the second quarter than the first-quarter sales of $3.5 billion. Also, Investors will be keen to know about sales of Pfizer’s key brands – Eliquis, Ibrance Xeljanz, Xtandi, Inlyta and Vyndaqel/Vyndamax – in the second-quarter earnings call.

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

GlaxoSmithKline plc

Glaxo’s earnings surpassed estimates in two of the trailing four quarters, while missing and meeting the same once each, delivering an earnings surprise of 1.12%, on average.

Glaxo has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate is pegged at 54 cents per ADS. You can see the complete list of today’s Zacks #1 Rank stocks here.

For the second quarter, Glaxo’s revenues are likely to have been driven by newer respiratory and HIV drugs, partially offset by weaker vaccine sales and decline in sales of the Established Pharmaceuticals segment. Glaxo, along with partner Vir Biotech, received emergency use authorization for its first COVID-19 therapy, sotrovimab (VIR-7831), in late May. We expect management to provide some insights on the uptake of the drug amid COVID-19 pandemic on the second-quarter earnings call.

GlaxoSmithKline plc Price and EPS Surprise

GlaxoSmithKline plc Price and EPS Surprise
GlaxoSmithKline plc Price and EPS Surprise

GlaxoSmithKline plc price-eps-surprise | GlaxoSmithKline plc Quote

Bristol-Myers Squibb Company

Bristol-Myers has a pretty decent track record when it comes to its earnings suprirse history. The company beat earnings estimates in three of the last four quarters and missed the same in the remaining one, delivering an earnings surprise of 6.07%, on average.

Bristol-Myers has an Earnings ESP of +0.18% and a Zacks Rank #3, indicating a likely earnings beat. The Zacks Consensus Estimate for earnings stands at $1.88 per share.

During the second-quarter earnings release, investors will be keen to know about sales of key immuno-oncology drug, Opdivo, which was weaker in the previous quarter and registered a 3% decline year over year.

Bristol Myers Squibb Company Price and EPS Surprise

Bristol Myers Squibb Company Price and EPS Surprise
Bristol Myers Squibb Company Price and EPS Surprise

Bristol Myers Squibb Company price-eps-surprise | Bristol Myers Squibb Company Quote

BioMarin Pharmaceutical Inc.

BioMarinexceeded earnings expectations in each of the trailing four quarters, delivering an earnings surprise of 78.63%, on average.

BioMarin has an Earnings ESP of 0.00% and a Zacks Rank #2. The Zacks Consensus Estimate for earnings stands at 30 cents per share.

During the second-quarter earnings call, we expect BioMarin to provide a regulatory update on its investigational gene therapy, valoctocogene roxaparvovec, which is being developed for the treatment of adults with severe hemophilia A. Investors will also be keen to get updates on other pipeline candidates.

BioMarin Pharmaceutical Inc. Price and EPS Surprise

BioMarin Pharmaceutical Inc. Price and EPS Surprise
BioMarin Pharmaceutical Inc. Price and EPS Surprise

BioMarin Pharmaceutical Inc. price-eps-surprise | BioMarin Pharmaceutical Inc. Quote

Tilray, Inc.

Tilray has an Earnings ESP of +14.47% and a Zacks Rank #3, indicating a likely earnings beat this time around. The Zacks Consensus Estimate stands at a loss of 8 cents per share. The company will report earnings results for the fourth quarter of fiscal year 2021, which ended on May 31, 2021.

Tilray is a leading global cannabis lifestyle and consumer packaged goods company. We expect investors to focus on revenue growth and other pipeline updates when the company reports fiscal fourth-quarter results.

Tilray, Inc. Price and EPS Surprise

Tilray, Inc. Price and EPS Surprise
Tilray, Inc. Price and EPS Surprise

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


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

GlaxoSmithKline plc (GSK) : Free Stock Analysis Report

Novartis AG (NVS) : Free Stock Analysis Report

Biogen Inc. (BIIB) : Free Stock Analysis Report

Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report

Johnson & Johnson (JNJ) : Free Stock Analysis Report

Pfizer Inc. (PFE) : Free Stock Analysis Report

BioMarin Pharmaceutical Inc. (BMRN) : Free Stock Analysis Report

Tilray, Inc. (TLRY) : Free Stock Analysis Report

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