Drug, Biotech Stocks' Q2 Earnings on Aug 8: LLY, LGND & More
The earnings season for the drug/biotech sector is now in its final lap, with large drugmaker, Eli Lilly LLY and some smaller biotech companies due to report their second-quarter results this week.
Most of the large drugmakers have already reported their results. Most companies beat estimates for both earnings and sales. Particularly a strong top-line performance attracted investor attention to the pharma sector. Driven by the better-than-expected performance in the first half, most companies also raised their guidance for 2023.
Per the Zacks classification, the pharma/biotech industry comes under the broader Medical sector, which comprises pharma/biotech as well as medical device companies.
As of Aug 2, per the Earnings Trends report, 56.9% of the companies in the Medical sector — representing 69.1% of the sector’s market capitalization — reported quarterly earnings. Of these, 84.8% of participants beat estimates for both earnings and revenues. While earnings declined 33.8% year over year, revenues rose 4.5% over the year-ago period.
Overall, second-quarter earnings of the Medical sector are expected to decline 31.1%, while sales are expected to rise 4.3% from the year-ago quarter’s respective reported figures
Here we discuss five biotech companies, Eli Lilly, Ligand Pharmaceuticals Incorporated LGND, Novavax NVAX, Emergent BioSolutions EBS, and bluebird bio BLUE, which are set to report second-quarter 2023 results on Aug 8.
Eli Lilly
This large drugmaker’s performance has been mixed, with the company missing earnings expectations in two of the last four quarters while beating in two. Lilly delivered a four-quarter negative earnings surprise of 5.55%, on average. In the last reported quarter, the company delivered a negative earnings surprise of 6.36%.
Eli Lilly and Company Price and EPS Surprise
Eli Lilly and Company price-eps-surprise | Eli Lilly and Company Quote
Per our proven model, companies 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 an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Lilly has an Earnings ESP of -0.84% and a Zacks Rank #3. The Zacks Consensus Estimate is pegged at earnings of $1.98 per share. Lilly will report before market open.
In the second quarter, higher demand and volume growth for Lilly’s key growth drugs, including Trulicity, Taltz, Verzenio, Jardiance and Emgality, are likely to have provided top-line support. Newer products like Mounjaro are likely to have contributed to sales growth. However, the entry of multiple generics due to the loss of exclusivity of Alimta in the United States is expected to have hurt the drug’s sales in the second quarter
Ligand Pharmaceuticals
Ligand Pharmaceuticals’ surprise history has been mixed, with the company missing earnings expectations in two of the last four quarters while beating in two, delivering an average beat of 21.50%. In the last reported quarter, Ligand Pharmaceuticals delivered an earnings beat of 121.36%.
Ligand Pharmaceuticals Incorporated Price and EPS Surprise
Ligand Pharmaceuticals Incorporated price-eps-surprise | Ligand Pharmaceuticals Incorporated Quote
Ligand Pharmaceuticals has an Earnings ESP of -7.29% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for earnings is pegged at 76 cents per share. Ligand will report after market close.
Novavax
NVAX’s surprise record has been dismal so far, with its earnings missing expectations in each of the last four quarters. It has a trailing four-quarter negative earnings surprise of 141.13%, on average. In the last reported quarter, Novavax’s earnings missed estimates by -0.89%.
Novavax, Inc. Price and EPS Surprise
Novavax, Inc. price-eps-surprise | Novavax, Inc. Quote
Novavax has an Earnings ESP of +67.61% and a Zacks Rank #3, suggesting a likely earnings surprise. The Zacks Consensus Estimate for loss per share stands at $1.24. Novavax will report before market open.
Emergent BioSolutions
Emergent BioSolutions has a poor track record, having missed earnings in each of the past four quarters, delivering an average negative earnings surprise of 634.97%. In the last reported quarter, Emergent BioSolutions’ earnings missed estimates by 89.82%.
Emergent Biosolutions Inc. Price and EPS Surprise
Emergent Biosolutions Inc. price-eps-surprise | Emergent Biosolutions Inc. Quote
Emergent BioSolutions has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate stands at a loss of 98 cents per share. Emergent BioSolutions will report after market close.
bluebird bio
bluebird bio’s surprise history has been strong, with earnings beating estimates in all the trailing four quarters. The trailing four-quarter average surprise is 88.25%. In the last reported quarter, bluebird bio’s earnings beat estimates by 138.89%.
bluebird bio, Inc. Price and EPS Surprise
bluebird bio, Inc. price-eps-surprise | bluebird bio, Inc. Quote
bluebird bio has an Earnings ESP of +9.16% and a Zacks Rank #3, suggesting a likely earnings surprise. The Zacks Consensus Estimate stands at a loss of 72 cents per share. bluebird bio will report before market open.
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Eli Lilly and Company (LLY) : Free Stock Analysis Report
Novavax, Inc. (NVAX) : Free Stock Analysis Report
Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report
Emergent Biosolutions Inc. (EBS) : Free Stock Analysis Report
bluebird bio, Inc. (BLUE) : Free Stock Analysis Report
