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Big Biotech In The Earnings Spotlight

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Amgen Inc. NASDAQ:AMGN, Celgene Corporation NASDAQ:CELG - Big Biotech In The Earnings Spotlight
  • The three largest biotechs are set to share their latest quarterly results this week.
  • Wall Street analysts are looking for solid to strong growth from all three.
  • However, expectations are lower for many other biotech and pharmaceutical companies reporting this week.

The three largest public biotech companies are expected to share their latest quarterly earnings this week. A look at the consensus forecasts of Wall Street analysts shows solid to strong growth on both the top and the bottom lines is expected from Amgen, Inc. AMGN, Celgene Corporation CELG and Gilead Sciences, Inc. GILD.

However, sentiment is lower for many other biotech and pharmaceutical companies on tap to share their results this week.

Below is a quick look at what is expected from the reports of these three biotech companies, as well as a peek at some of the other companies that also are on tap to post quarterly results this week.

Amgen

In its report late Thursday, this human therapeutics company focused on cancer and autoimmune diseases is expected to say that in the first quarter it had earnings of $2.62 per share, according to 29 Estimize respondents. That would be 14 cents more than in the same period last year. The Wall Street consensus estimate is $2.60 per share, although analysts underestimated EPS in the previous quarter.

Estimize overestimated Amgen's revenue in the previous quarter, and this time, the respondents are looking for about $5.41 billion. The analysts' forecast calls for $5.32 billion, which would be almost 6 percent higher year-over-year. Furthermore, Wall Street so far sees revenue for the current quarter up nearly 3 percent from a year ago.

Celgene

The consensus Wall Street forecast calls for this New Jersey-based company focused on cancer and inflammatory diseases to post first-quarter EPS of $1.28 (or up more than 16 percent from in the year-ago period) and for revenue to have risen nearly 24 percent to $2.58 billion. EPS fell short of expectations in the previous quarter, ending a streak of narrow earnings beats.

Here too Estimize is a bit less optimistic on earnings, with the consensus of 35 respondents pegging results at $1.27 per share on revenue of $2.60 billion for the three months ended in March. Back in the fourth quarter, Estimize overestimated earnings but underestimated revenues. Celgene is scheduled to share its latest results before Thursday's opening bell.

Gilead Sciences

If the consensus of 112 Estimize estimates is correct, this biopharmaceutical company focused on HIV and hepatitis will post $3.24 per share earnings for its first quarter. That compares to EPS of $2.94 in the year-ago period and a current Wall Street estimate of $3.13. The Wall Street forecast is up by six cents in the past 60 days, but EPS have topped expectations in recent quarters.

However, both Estimize and Wall Street underestimated revenue in the previous quarter. For the three months that ended in March, they are looking for $8.21 billion and $8.08 billion, respectively, when Gilead Sciences reports late on Thursday. Note that Wall Street so far sees year-on-year revenue declines in the current quarter and for the full year.

And Others

The three companies featured above seem to be bucking a trend, however, as sentiment is somewhat lower for many other biotech and pharmaceutical companies scheduled to share their quarterly results this week.

EPS at Acorda Therapeutics, Alexion Pharmaceuticals, Baxalta, Baxter International, Bristol-Myers Squibb, Eli Lilly and Sanofi will be smaller than a year ago, according to the consensus forecasts. Net losses are in the cards for Alder BioPharmaceuticals, Alkermes, BioMarin Pharmaceutical, BioPharmX, Cempra, ImmunoGen, Nabriva Therapeutics, NewLink Genetics and Seattle Genetics, if results match expectations.

Yet, Wall Street analysts are looking for some year-over-year earnings growth from AbbVie, Anika Therapeutics, AstraZeneca, Vertex Pharmaceuticals, Novo Nordisk, Shire and United Therapeutics.

Disclosure: At the time of this writing, the author had no position in the mentioned equities.

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