The fourth-quarter earnings season for the biotech sector is in full swing this week. A few bigwigs have already reported results. Among these, Bristol Myers reported better-than-expected fourth-quarter results but provided a lackluster guidance for 2025. Regeneron also beat on fourth-quarter earnings and sales and initiated a quarterly dividend. Amgen’s fourth-quarter results were decent as it beat on earnings as well as sales. However, investors were disappointed by a regulatory setback for its obesity drug.
Find the latest EPS estimates and surprises on ZacksEarnings Calendar.
Per the Zacks classification, the pharma/biotech industry falls under the broader Medical sector, comprising pharma/biotech and generic companies, and medical device companies.
Per the Earnings Trends report, as of Feb. 5, 39.3% of the companies in the Medical sector — representing 61.2% of the sector’s market capitalization — reported quarterly earnings. Of these, 87.5% beat on earnings, while 83.3% beat on revenues. Earnings increased 20.1% year over year, while revenues grew 9%. Overall, fourth-quarter earnings of the Medical sector are expected to increase 11.1% year over year, while revenues are likely to grow 9%.
Quite a few biotech giants like Vertex Pharmaceuticals VRTX, Gilead Sciences GILD, Biogen BIIB, Alnylam Pharmaceuticals ALNY and Moderna MRNA are scheduled to report results this week. Let’s see how things might have shaped up for these companies ahead of their earnings release.
Vertex Pharmaceuticals
Vertex Pharmaceuticals’ earnings beat estimates in three of the trailing four quarters and missed the same once, delivering an average surprise of 3.26%. In the last reported quarter, Vertex delivered an earnings surprise of 6.05%.
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.
Vertex currently has an Earnings ESP of +0.77% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter sales and earnings is pegged at $2.77 billion and $3.99 per share, respectively.
Higher sales of its blockbuster cystic franchise (CF) medicine, Trikafta/Kaftrio (Trikafta’s brand name in Europe), in younger age groups have likely driven growth for the company in the fourth quarter.
Vertex Pharmaceuticals will report fourth-quarter and full-year 2024 earnings on Feb. 10, after market close.
Vertex Pharmaceuticals Incorporated Price, Consensus and EPS Surprise
Gilead Sciences’ earnings beat expectations in three of the trailing four quarters and missed the same once, delivering an average surprise of 15.46%. In the last reported quarter, the company delivered an earnings surprise of 27.85%.
GILD has an Earnings ESP of +1.70% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for fourth-quarter sales and earnings is pegged at $7.06 billion and $1.66 per share, respectively.
Gilead has a market-leading HIV franchise, led by flagship HIV therapies — Biktarvy and Descovy. Higher Biktarvy sales, boosted by higher demand, have likely fueled sales. Descovy’s revenues, too, have likely increased as the pre-exposure prophylaxis market continued to demonstrate robust growth.
However, Cell therapy franchise sales have likely been under pressure in the fourth quarter.
GILD is scheduled to report fourth-quarter and full-year 2024 results on Feb. 11, after market close.
Gilead Sciences, Inc. Price, Consensus and EPS Surprise
Gilead Sciences, Inc. price-consensus-eps-surprise-chart | Gilead Sciences, Inc. Quote
Biogen
Biogen’s earnings beat expectations in three of the trailing four quarters and missed once, delivering an average surprise of 9.99%. In the last reported quarter, BIIB delivered an earnings surprise of 8.22%.
BIIB has an Earnings ESP of -2.91% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for fourth-quarter sales and earnings is pegged at $2.42 billion and $3.42 per share, respectively.
Lower sales of multiple sclerosis drugs and spinal muscular atrophy drug, Spinraza, are likely to have been offset by revenues from new drugs.
Biogen will report fourth-quarter and full-year 2024 earnings on Feb. 12, before the opening bell.
Biogen Inc. Price, Consensus and EPS Surprise
Biogen Inc. price-consensus-eps-surprise-chart | Biogen Inc. Quote
Alnylam Pharmaceuticals
Alnylam’s earnings beat estimates in three of the trailing four quarters and met the same once, delivering an average surprise of 65.67%. In the last reported quarter, ALNY’s earnings met expectations.
ALNY has an Earnings ESP of -192.68% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for sales and earnings is pegged at $570.1 million and at a loss of 21 cents per share, respectively.
Higher Amvuttra sales have likely offset the decline in Onpattro sales in the fourth quarter. Increased sales of Givlaari and Oxlumo have likely boosted the top line.
ALNY will report fourth-quarter and full-year 2024 earnings on Feb. 13, before the opening bell.
Alnylam Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Alnylam Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Alnylam Pharmaceuticals, Inc. Quote
Moderna
Moderna’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 72.65%. In the last reported quarter, its earnings beat expectations by 101.59%.
The company has an Earnings ESP of +3.26% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for sales and earnings is pegged at $956.11 million and at a loss of $2.65 per share, respectively. Both metrics indicate a significant decline from the year-ago levels.
Moderna, Inc. Price, Consensus and EPS Surprise
Moderna, Inc. Price, Consensus and EPS Surprise
Moderna, Inc. price-consensus-eps-surprise-chart | Moderna, Inc. Quote
Moderna is likely to have generated a major portion of its revenues from selling its COVID-19 vaccine. However, sales have likely declined from the year-ago level due to lower demand. Based on preliminary updates last month, the company has likely recorded minimal product sales of its RSV vaccine mResvia, which received FDA approval in May.
MRNA is set to report fourth-quarter and full-year 2024 earnings on Feb. 14, before the opening bell.
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