U.S. Markets close in 5 hrs 23 mins
  • S&P 500

    4,576.98
    +44.22 (+0.98%)
     
  • Dow 30

    35,319.54
    +290.89 (+0.83%)
     
  • Nasdaq

    14,556.68
    +216.42 (+1.51%)
     
  • Russell 2000

    2,082.14
    +19.36 (+0.94%)
     
  • Crude Oil

    87.00
    +0.04 (+0.05%)
     
  • Gold

    1,846.30
    +3.10 (+0.17%)
     
  • Silver

    24.58
    +0.35 (+1.46%)
     
  • EUR/USD

    1.1346
    -0.0001 (-0.0113%)
     
  • 10-Yr Bond

    1.8290
    +0.0020 (+0.11%)
     
  • Vix

    22.15
    -1.70 (-7.13%)
     
  • GBP/USD

    1.3644
    +0.0032 (+0.2374%)
     
  • USD/JPY

    114.0720
    -0.2810 (-0.2457%)
     
  • BTC-USD

    43,319.21
    +1,137.47 (+2.70%)
     
  • CMC Crypto 200

    1,028.66
    +33.39 (+3.36%)
     
  • FTSE 100

    7,563.99
    -25.67 (-0.34%)
     
  • Nikkei 225

    27,772.93
    +305.70 (+1.11%)
     

Drug, Biotech Stock Q3 Earnings on Nov 4: MRNA, REGN & More

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·6 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

The third-quarter reporting cycle for the Medical sector is approaching its end. The sector comprises pharma/biotech and medical device companies.

Several big pharma companies have reported their third-quarter results so far. The results demonstrated that sales of key drugs continued to witness strong recovery during the quarter from the adverse impacts of COVID-related disruptions. The non-COVID vaccine portfolio of large pharma companies also displayed a strong recovery in demand due to the return to a more normal level of wellness visits. Bristol-Myers, Biogen, Gilead Sciences, Merck and Glaxo beat on both earnings and sales. J&J and BioMarin beat earnings estimates but missed the same for revenues. Lilly missed earnings estimates while outpacing estimates for revenues.

Per the Earnings Trends report, as of Oct 27, 25.5% of the companies in the Medical sector, constituting nearly 47.6% of the sector’s market capitalization, have reported earnings. While 78.6% beat earnings estimates, 85.7% beat the same for sales. Earnings increased 19.6% year over year on 12.1% higher revenues.

The majority of key players from the pharma space have demonstrated encouraging performance led by strong recovery in sales of newer drugs. Some of these companies also raised their guidance for 2021 based on the encouraging trend in sales growth so far. Overall, third-quarter earnings of the Medical sector are expected to rise 21.8% on a 10.5% sales increase.

Let’s analyze five pharma/drug/biotech companies set to report third-quarter 2021 results on Nov 4.

Moderna MRNA

The developer of the mRNA-based COVID-19 vaccine mRNA-1273, Moderna is scheduled to report before market open.

The company’s performance has been mixed so far, with earnings beating estimates in two of the trailing four quarters and missing the same twice. It has a four-quarter negative surprise of 41.63%, on average. In the last-reported quarter, the company’s earnings beat estimates by 7.49%.

Per our proven 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The Zacks Consensus Estimate for earnings stands at $9.01 per share. For the quarter to be reported, Moderna has an Earnings ESP of +3.59% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

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

Moderna, Inc. Price and EPS Surprise

Moderna, Inc. Price and EPS Surprise
Moderna, Inc. Price and EPS Surprise

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

Regeneron Pharmaceuticals REGN

Regeneron, which has an impressive earnings track record so far, is also scheduled to report results before market open.

The company beat earnings estimates in each of the trailing four quarters, with the average being 18.66%. In the last-reported quarter, the company’s earnings beat estimates by 11.55%. Regeneron is likely to beat estimates in the soon-to-be reported quarter as the company has an Earnings ESP of +8.78% and a Zacks Rank #1. The Zacks Consensus Estimate for earnings stands at $9.81 per share.

Regeneron’s top line is likely to have been driven by strong demand for Eylea and Dupixent during the third quarter. The antibody cocktail REGEN-COV for COVID-19 patients is likely to have brought additional revenues. (Read more: Will Eylea, Dupixent, REGEN COV Aid Regeneron Q3 Earnings?)

Regeneron Pharmaceuticals, Inc. Price and EPS Surprise

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

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

Zoetis ZTS

A leader in the animal health space, Zoetis, is scheduled to report results before market open.

In the last-reported quarter, the company beat earnings expectations by 10.19%. The company beat earnings estimates in each of the trailing four quarters with the average being 15.19%.

The company is likely to beat earnings estimates in the third quarter as Zoetis has an Earnings ESP of +5.46% and a Zacks Rank #3, suggesting an earnings beat. The Zacks Consensus Estimate for earnings stands at $1.10 per share.

Zoetis revenues in the last-reported quarter increased driven by higher sales of companion animal products – a trend that most likely continued in the third quarter as well. (Read more: Is a Beat in Store for Zoetis This Earnings Season?)

Zoetis Inc. Price and EPS Surprise

Zoetis Inc. Price and EPS Surprise
Zoetis Inc. Price and EPS Surprise

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

Novavax NVAX

Novavax, which has a dismal track record so far, will release results after market close. The company missed earnings expectations by 26.33% in the last-reported quarter. It missed on earnings in each of the last four quarters, the average being -88.48%.

For the quarter to be reported, Novavax has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for loss stands at $4.04 per share.

The revenues during the third quarter are likely to have been driven by funding related to the development of its coronavirus vaccine candidate NVX-CoV2373. The company may provide updates on the regulatory filing timeline of the COVID-19 vaccine candidate on the upcoming earnings call. (Read more: Novavax to Report Q3 Earnings: What's in the Cards?)

Novavax, Inc. Price and EPS Surprise

Novavax, Inc. Price and EPS Surprise
Novavax, Inc. Price and EPS Surprise

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

Endo International ENDP

Endo, which has an impressive earnings track record so far, is also scheduled to report results after market close.

The company beat earnings estimates in each of the trailing four quarters with the average being 107.07%. In the last reported quarter, the company’s earnings beat estimates by 54.76%. For the quarter to be reported, Endo has an Earnings ESP of +14.60% and a Zacks Rank #2. The Zacks Consensus Estimate for earnings stands at 46 cents per share.

Endo’s revenues are likely to have been driven by strong demand for its Specialty Products. However, the impact of the surge of COVID-19 infections during the third quarter remains to be seen.

Endo International plc Price and EPS Surprise

Endo International plc Price and EPS Surprise
Endo International plc Price and EPS Surprise

Endo International plc price-eps-surprise | Endo International plc 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

Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report

Endo International plc (ENDP) : Free Stock Analysis Report

Moderna, Inc. (MRNA) : Free Stock Analysis Report

Novavax, Inc. (NVAX) : Free Stock Analysis Report

Zoetis Inc. (ZTS) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research