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Biotech Stocks Reporting on May 9: INCY, HZNP, JUNO & More

It’s nearing the closing bell of the first-quarter 2016 earnings season with almost 75% of the S&P 500 members having already reported results. With 71.4% of these members beating bottom-line estimates and 56.4% surpassing top-line expectations, the first-quarter earnings season has been A Case of Low Expectations.

Notably, the Medical sector is anticipated to be one of the seven sectors to record earnings growth in the first quarter of 2016, as per our Earnings Trends. Our Q1 scorecard shows that 75.5% of the Medical sector has reported results with a blended beat of 67.5% (the percentage of companies that have beaten both EPS as well as revenue estimates).

Particularly, the earnings picture for the biotech sector looks quite mixed. By now, several biotech companies have reported first-quarter results.

Companies like Amgen Inc. AMGN and Regeneron have topped first-quarter earnings and revenues. While Amgen raised the outlook for the year, Regeneron upped the 2016 view for its key eye drug, Eylea. However, heavyweight biotech stock Gilead lagged both earnings and revenue estimates even though it reiterated its outlook for the year. As far as the other biotech stocks are concerned, including the likes of Biogen, Celgene, Alexion, and AbbVie, while some managed to post mixed results, others came up with disappointing performances and outlooks for the year.

Still, several medium and small-sized biotech companies are yet to report first-quarter results. Let’s see what awaits these six biotech stocks when they report their first-quarter 2016 results on May 9.

Can these Biotech Stocks Pull a Surprise?

Horizon Pharma plc HZNP has already provided weaker-than-expected net sales and adjusted EBITDA expectations for the first quarter of 2016 last month. The company expects a major part of its sales and EBITDA to come in the second half of the year. Focus will be on the results of the company’s business units as well as the performance of key products including Actimmune. Horizon Pharma’s Zacks Rank #3 (Hold) and an Earnings ESP of -13.16% do not conclusively show that the company is likely to beat earnings estimates this quarter (read more: What's in Store for Horizon This Earnings Season?).



Oncology focused Incyte Corporation’s INCY Zacks Rank #3 increases the predictive power of the ESP but its ESP of -46.67% makes a surprise prediction difficult this quarter. Incyte’s track record has however been pretty good with the company surpassing expectations in three of the last four quarters with an average positive surprise of 85.99%.


Juno Therapeutics Inc. JUNO is among the major players in the field of T-cell-based immunotherapy and has pipeline candidates like JCAR015, JCAR017 and JCAR014 which use CAR T cell technology to target CD19. It has collaborations with companies like Celgene for the global development and commercialization of immunotherapies. With no approved products in its portfolio and not generating any product revenues as yet, focus will be on the company’s cash burn and pipeline updates.

Juno has a Zacks Rank #3 which when combined with an ESP 0.00% makes a surprise prediction difficult (read more: Juno Q1 Earnings: What's in Store for the Stock?).


San Diego, CA-based Halozyme Therapeutics, Inc. HALO, focused on the development and commercialization of oncology therapies, has an impressive track record. The company has beaten estimates in three of the trailing four quarters with an average positive surprise of 60.41%. Our model does not show that Halozyme is likely to beat estimates this quarter. Though the company’s Zacks Rank #3 enhances the predictive power of the ESP, its 0.00% ESP makes a surprise prediction difficult.


Kite Pharma, Inc.’s KITE performance over the last four quarters is mostly disappointing with the company surpassing expectations in just one quarter. Moreover, Kite Pharma’s Zacks Rank #4 (Sell) which when combined with an ESP -11.48% does not conclusively show that Kite Pharma is likely to beat estimates this quarter as well.

This development-stage company is looking to transform the paradigm of treating cancer which involves using the body’s immune system to recognize and destroy cancer cells. Focus will be on updates on the company’s progress with its lead pipeline candidate KTE-C19 as well as on collaboration agreements with several companies including Amgen (read more: Kite to Report Q1 Earnings: Will the Stock Disappoint?).


Parsippany, NJ-based The Medicines Company MDCO has a portfolio of offerings targeting unmet medical needs in the acute intensive care hospital segment. Its track record has been pretty good with the company beating estimates in three of the last four reported quarters. Overall, the company has delivered a positive surprise of 31.34%. Although the company’s Zacks Rank #3 enhances the predictive power of the ESP, its 0.00% ESP makes a surprise prediction difficult.

Stay tuned! Check later on our full write-up on earnings releases of these stocks.

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MEDICINES CO (MDCO): Free Stock Analysis Report
 
AMGEN INC (AMGN): Free Stock Analysis Report
 
INCYTE CORP (INCY): Free Stock Analysis Report
 
KITE PHARMA INC (KITE): Free Stock Analysis Report
 
JUNO THERAPEUTC (JUNO): Free Stock Analysis Report
 
HALOZYME THERA (HALO): Free Stock Analysis Report
 
HORIZON PHARMA (HZNP): Free Stock Analysis Report
 
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