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The drug/biotech sector’s reporting cycle is approaching its end. All big drugmakers have already reported their results. The large drugmakers mostly reported disappointing first-quarter 2021 results with many companies missing estimates for both earnings and sales. A few like Pfizer, AstraZeneca, AbbVie and J&J reported better-than-expected results.
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 May 4, 75.9% of the companies in the Medical sector, constituting nearly 86.6% of the sector’s market capitalization, reported earnings. While 78.0% beat earnings estimates, 68.3% beat the same for sales. Earnings increased 22% year over year on 13.2% higher revenues. Overall, first-quarter earnings for the Medical sector are expected to rise 23.6% on 10.6% sales increase.
Let’s analyze the three drug/biotech companies that are set to report first-quarter 2021 results on May 7.
Radius Health RDUS
Radius Health has a poor earnings track record. It missed earnings estimates thrice in the past four quarters while delivering in-line results in one, recording an average negative earnings surprise of 18.03%.
Radius Health, Inc. Price and EPS Surprise
Radius Health, Inc. price-eps-surprise | Radius Health, Inc. Quote
This small biotech focused on the development of endocrine therapeutics in the areas of osteoporosis and oncology has an Earnings ESP of -17.37% and a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for loss stands at 42 cents per share.
Per our proven model, stocks with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 have a good chance of delivering earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Cronos Group Inc. CRON
This medical marijuana company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters while missing in the other two, the average negative surprise being 3.58%.
Cronos Group Inc. Price and EPS Surprise
Cronos Group Inc. price-eps-surprise | Cronos Group Inc. Quote
This Zacks Rank #5 (Strong Sell) company has an Earnings ESP of 0.00%. The Zacks Consensus Estimate for loss stands 9 cents per share.
The company has a disappointing earnings surprise history, having missed expectations in the past three quarters. The average three-quarter negative earnings surprise was 274.44%.
Ocugen, Inc. Price and EPS Surprise
Ocugen, Inc. price-eps-surprise | Ocugen, Inc. Quote
Ocugen has an Earnings ESP of 0.00% and a Zacks Rank #5.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for earnings stands at 50 cents per share.
Investors are likely to focus on updates on Ocugen’s gene therapy candidate, OCU400, on the first-quarter call.
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Cronos Group Inc. (CRON) : Free Stock Analysis Report
Ocugen, Inc. (OCGN) : Free Stock Analysis Report
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