Drug/Biotech Stocks' Apr 27 Q1 Earnings Roster: GSK, AMGN & More
The earnings season for the pharma sector began last week, with Johnson & Johnson JNJ reporting mixed first-quarter results .
J&J’s earnings beat the Zacks Consensus Estimate but its sales missed the same.
Per the Zacks classification, the pharma/biotech industry comes under the broader Medical sector, which comprises pharma/biotech as well as medical devices companies.
Per the Earnings Trends report, as of Apr 20, 7% of the companies in the Medical sector, constituting nearly 27.6% of the sector’s market capitalization, have reported earnings. While 100% of the companies beat earnings estimates, 75% beat the same for revenues. Earnings increased 8.4% year over year on 13.5% higher revenues.
Overall, first-quarter earnings of the Medical sector are expected to rise 10.3% on a 13.3% sales increase.
Let's see how things have shaped up for GlaxoSmithKline plc GSK, Amgen Inc. AMGN, Alkermes plc ALKS and BioMarin Pharmaceutical Inc. BMRN in the first quarter. These companies will report earnings on Apr 27:
GlaxoSmithKline plc
Glaxo’s earnings surpassed estimates in three of the trailing four quarters and met the same once, delivering a beat of 20.52%, on average. In the last-reported quarter, the company delivered an earnings surprise of 9.52%.
Glaxo has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for first-quarter earnings is 77 cents per share. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Per our proven model, stocks with the combination of a positive Earnings ESP and a Zacks Rank #1, #2 (Buy) or #3 have a good chance of delivering an earnings beat. That does not seem to be the case with Glaxo in the to-be-reported quarter. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Glaxo’s first-quarter 2022 revenues are likely to have been driven by the COVID-19 drug, Xevudy (sotrovimab). Xevudy has been developed in collaboration with Vir Biotechnology. Higher sales of newer respiratory and HIV drugs are likely to have been offset by a decline in sales of older HIV drugs and Established Pharmaceuticals segment's sales.
The growth trend in Respiratory category sales is expected to have continued in the first quarter on the back of strong demand for Trelegy Ellipta and Nucala amid recovery following the pandemic.
Oncology sales, comprising of Zejula and Blenrep, are also likely to have witnessed growth.
GlaxoSmithKline plc Price and EPS Surprise
GlaxoSmithKline plc price-eps-surprise | GlaxoSmithKline plc Quote
Amgen Inc.
Amgen’s performance has been mixed of late, with its earnings beating estimates in three of the trailing four quarters while missing the same in one. The company delivered a four-quarter earnings surprise of 3.63%, on average.
In the last-reported quarter, Amgen delivered an earnings surprise of 5.31%.
Our proven model predicts an earnings beat for Amgen in the to-be-reported quarter. Amgen’s Earnings ESP is +2.58% and it has a Zacks Rank #3 currently. The Zacks Consensus Estimate for its earnings in the to-be-reported quarter stands at $4.21.
Volume growth from Amgen’s key drugs like Prolia, Xgeva, Repatha, Blincyto and Evenity, and from the company’s biosimilars portfolio, is expected to have driven top-line growth in the first quarter of 2022.
However, increasing branded and generic competition for its legacy products like Enbrel, Aranesp, Epogen, Neupogen, Neulasta and Sensipar are likely to have hurt the top line.
Amgen Inc. Price and EPS Surprise
Amgen Inc. price-eps-surprise | Amgen Inc. Quote
Alkermes plc
Alkermes’ earnings performance has been excellent so far, with its earnings beating expectations in each of the trailing four quarters. The company has delivered a four-quarter earnings surprise of 155.48%, on average. In the last-reported quarter, the company’s earnings beat estimates by 76.92%.
Alkermes has an Earnings ESP of 0.00% and has a Zacks Rank #1 (Strong Buy) presently. The Zacks Consensus Estimate for its earnings stands at 1 cent per share.
Alkermes’ revenues are being driven by its proprietary products, Vivitrol, Aristada and Vumerity, along with some partnered products. These products are expected to have driven the company’s top-line growth in the first quarter of 2022.
Newly approved medicine, Lybalvi, is also generating incremental sales.
Total manufacturing and royalty revenues increased year over year in the last-reported quarter, a trend that most likely continued in the to-be-reported quarter.
Alkermes plc Price and EPS Surprise
Alkermes plc price-eps-surprise | Alkermes plc Quote
BioMarin Pharmaceutical Inc.
BioMarin’s performance has been excellent so far, with its earnings beating expectations in each of the trailing four quarters. The company has delivered a four-quarter earnings surprise of 116.33%, on average. In the last-reported quarter, the company’s earnings beat estimates by 250.00%.
BioMarin has an Earnings ESP of 0.00% and a Zacks Rank #2 currently. The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at 38 cents per share.
Sales of BioMarin's marketed brands (excluding Aldurazyme) decreased year over year in the last-reported quarter, a trend that most likely continued in the to-be-reported quarter. However, Brineura and Palynziq sales increased on yearly basis in the last-reported quarter, and this trend is also likely to have continued in the first quarter.
Newly approved drug, Voxzogo, has witnessed a strong launch, which looks positive for BioMarin as well.
BioMarin Pharmaceutical Inc. Price and EPS Surprise
BioMarin Pharmaceutical Inc. price-eps-surprise | BioMarin Pharmaceutical Inc. Quote
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GlaxoSmithKline plc (GSK) : Free Stock Analysis Report
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Alkermes plc (ALKS) : Free Stock Analysis Report
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