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Drug/Biotech Stock Q2 Earnings on Aug 3: LLY, AMGN & More

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The drug/biotech sector’s earnings season is in full swing. Among the large drug/biotech companies, J&J, Biogen, Gilead, Novartis, Pfizer, Merck, AstraZeneca, Glaxo and Sanofi have already announced second-quarter results with the majority beating estimates on both counts. Some companies like J&J and Pfizer raised their expectations for both earnings and sales.

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 28, 29.1% of the companies in the Medical sector, constituting nearly 50.5% of the sector’s market capitalization, reported earnings. While 93.8% beat earnings estimates, 100% beat the same for sales. Earnings increased 12.2% year over year on 20.2% higher revenues. Overall, second-quarter earnings for the Medical sector are expected to rise 23.2% on 18.4% sales increase.

Let’s analyze four drug/biotech companies — EliLilly & Company LLY, Amgen AMGN, Incyte INCY and Alnylam Pharmaceuticals ALNY — that are set to report second-quarter 2021 results on Aug 3.

Lilly

Eli Lilly & Company’s performance has been mixed, with earnings beating in two of the trailing four quarters while missing in the other two. The company delivered a four-quarter earnings surprise of 3.09%, on average.

This large drugmaker hasan Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).

Eli Lilly and Company Price and EPS Surprise

Eli Lilly and Company Price and EPS Surprise
Eli Lilly and Company Price and EPS Surprise

Eli Lilly and Company price-eps-surprise | Eli Lilly and Company Quote

The Zacks Consensus Estimate for earnings stands at $1.89 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 (Hold) 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.

Higher demand for its growth drugs including Trulicity, Taltz, Verzenio, Jardiance, Olumiant, and Emgality are likely to have offset generic competition for several other drugs and may have boosted Lilly’s second-quarter sales.

Amgen

The large biotech’s performance has been mixed with earnings beating estimates in three of the trailing four quarters while missing in one. The company delivered a four-quarter earnings surprise of 8.49%, on average.

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

This Zacks Rank #3 company has an Earnings ESP of -1.23%. The Zacks Consensus Estimate for earnings stands at $4.13 per share.

In the second quarter, volume growth from Prolia, Otezla Repatha, Nplate, Blincyto, Evenity, Aimovig, and Amgen’s biosimilars portfolio is expected to have been partially offset by biosimilar/generic competition for mature drugs and accelerating erosion in U.S. Parsabiv sales due to changes in reimbursement rules for the drug.

Incyte

The company has a decent track record. It beat earnings expectations in three of the last four quarters and missed in one, the average surprise being 2.37%.

Incyte Corporation Price and EPS Surprise

Incyte Corporation Price and EPS Surprise
Incyte Corporation Price and EPS Surprise

Incyte Corporation price-eps-surprise | Incyte Corporation Quote

Incyte has a Zacks Rank of 4 and an Earnings ESP of -4.33%. The Zacks Consensus Estimate for earnings stands at 73 cents share.

Sales of Incyte’s lead drug, Jakafi, were soft in the previous quarter due to a decline in new patient starts as a result of the ongoing pandemic. Sales of the drug are likely to have improved in the second quarter with the easing of lockdown restrictions.

Alnylam

The company has a mixed earnings surprise history, having missed expectations in the past two quarters while beating in the other two. The average four-quarter negative earnings surprise was 4.43%.

Alnylam Pharmaceuticals, Inc. Price and EPS Surprise

Alnylam Pharmaceuticals, Inc. Price and EPS Surprise
Alnylam Pharmaceuticals, Inc. Price and EPS Surprise

Alnylam Pharmaceuticals, Inc. price-eps-surprise | Alnylam Pharmaceuticals, Inc. Quote

Alnylam hasan Earnings ESP of +8.79% and a Zacks Rank #4. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate stands at loss of $1.57 per share.


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Alnylam Pharmaceuticals, Inc. (ALNY) : Free Stock Analysis Report

Eli Lilly and Company (LLY) : Free Stock Analysis Report

Amgen Inc. (AMGN) : Free Stock Analysis Report

Incyte Corporation (INCY) : Free Stock Analysis Report

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