Drug/Biotech Stocks' Q4 Earnings on Mar 1: PRGO, JAZZ & More

The drug/biotech sector’s earnings season is approaching its end. Overall, it was a mixed earnings season for the drug and biotech sector. Most companies beat estimates for earnings while missing the same for sales or vice versa. However, some companies like Merck and Vertex have not only been able to beat consensus estimates but also issued better-than-expected guidance for 2022.

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 Feb 16, 80.4% of the companies in the Medical sector, constituting nearly 91.5% of the sector’s market capitalization, have reported earnings. Of these, 71.7% of the companies beat earnings as well sales estimates. Earnings increased 18.5% year over year on 12.7% higher revenues.

Overall, fourth-quarter earnings of the Medical sector are expected to rise 25.8% on a 13.9% sales increase.

Let’s analyze five drug/biotech companies — Perrigo Company PRGO, Jazz Pharmaceuticals JAZZ, Horizon Therapeutics Public Limited Company HZNP, Sarepta Therapeutics SRPT and Axsome Therapeutics AXSM — that are set to report fourth-quarter 2021 results on Mar 1.

Perrigo Company

Perrigo missed earnings estimates in each of the trailing four quarters, the average negative surprise being 16.86%. In the last-reported quarter, the company missed expectations by 30.77%.

Perrigo Company plc Price and EPS Surprise

Perrigo Company plc Price and EPS Surprise

Perrigo Company plc price-eps-surprise | Perrigo Company plc 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 earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

This company hasan Earnings ESP of +4.73% and a Zacks Rank #3. The Zacks Consensus Estimate for earnings stands at 56 cents per share.

Significant sales growth of new products, the contribution from acquisitionsand a potential recovery in sales of cough/cold products are likely to have aided Perrigo’s top line in the fourth quarter.

Jazz Pharmaceuticals

The company’s earnings surprise history has been mixed with its earnings beating estimates in three of the trailing four quarters while missing the same on one occasion, delivering an earnings surprise of 10.52%, on average. In the last-reported quarter, Jazz delivered an earnings surprise of 28.44%.

Jazz Pharmaceuticals PLC Price and EPS Surprise

Jazz Pharmaceuticals PLC Price and EPS Surprise

Jazz Pharmaceuticals PLC price-eps-surprise | Jazz Pharmaceuticals PLC Quote

This Zacks Rank #3 company has an Earnings ESP of +0.84%. The Zacks Consensus Estimate stands at $3.70 per share.

Horizon Therapeutics

Horizon Therapeutics’ performance has been mixed with its earnings beating estimates in three of the trailing four quarters and missing the same on one occasion. The company delivered a four-quarter positive earnings surprise of 14.11%, on average.

Horizon Therapeutics Public Limited Company Price and EPS Surprise

Horizon Therapeutics Public Limited Company Price and EPS Surprise

Horizon Therapeutics Public Limited Company price-eps-surprise | Horizon Therapeutics Public Limited Company Quote

This Zacks Rank #4 company has an Earnings ESP of 0.00%. The Zacks Consensus Estimate for earnings stands at $1.27 per share.

Sarepta Therapeutics

The company’s earnings surprise history has been mixed with its earnings beating estimates in two of the trailing four quarters while missing in the other two, delivering a four-quarter average positive earnings surprise of 11.06%. In the last-reported quarter, Sarepta delivered earnings beat of 67.74%.

Sarepta Therapeutics, Inc. Price and EPS Surprise

Sarepta Therapeutics, Inc. Price and EPS Surprise

Sarepta Therapeutics, Inc. price-eps-surprise | Sarepta Therapeutics, Inc. Quote

This Zacks Rank #3 company has an Earnings ESP of -20.91%. The Zacks Consensus Estimate stands at a loss of $1.21 per share.

Axsome Therapeutics

The company beat estimates in three of the trailing four quarters and missed the same on one occasion. The company delivered a four-quarter positive earnings surprise of 0.63%, on average.

Axsome Therapeutics, Inc. Price and EPS Surprise

Axsome Therapeutics, Inc. Price and EPS Surprise

Axsome Therapeutics, Inc. price-eps-surprise | Axsome Therapeutics, Inc. Quote

Axsome has a Zacks Rank of 2 and an Earnings ESP of 0.00%. The Zacks Consensus Estimate stands at a loss of 99 cents per share.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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

Perrigo Company plc (PRGO) : Free Stock Analysis Report

Jazz Pharmaceuticals PLC (JAZZ) : Free Stock Analysis Report

Horizon Therapeutics Public Limited Company (HZNP) : Free Stock Analysis Report

Sarepta Therapeutics, Inc. (SRPT) : Free Stock Analysis Report

Axsome Therapeutics, Inc. (AXSM) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research