The third-quarter 2024 reporting cycle of the Medical sector is about to end as most firms have already reported their earnings results. The sector mainly comprises pharma/biotech and medical device companies. The earnings season for the drug and biotech sector kicked off around mid-October when bellwether Johnson & Johnson reported strong third-quarter results, beating estimates for earnings and sales. J&J consequently raised its total revenue expectation for the year while lowering its adjusted earnings expectation.
Among other pharma bigwigs, Novartis also beat third-quarter earnings and revenue estimates, driven by a year-over-year increase in sales of key drugs. Based on strong momentum, Novartis raised its sales guidance for the year. However, Novo Nordisk, a market leader in diabetes and obesity care medicines, failed to meet investor expectations in the reported quarter, despite higher product sales. Eli Lilly also missed earnings and revenue estimates in the third quarter and lowered its financial guidance for the year.
Per the Earnings Trends report, as of Nov. 6, 81% of the companies in the Medical sector — representing 90.8% of the sector’s market capitalization — reported quarterly earnings. Of these, 78.7% outperformed earnings estimates, while 76.6% beat the same for revenues. Earnings increased 12.8% year over year, while revenues increased 10.5%. Overall, third-quarter earnings of the Medical sector are expected to increase 9.8%, while sales are expected to rise 10.9% from the year-ago quarter.
AstraZeneca AZN, Novavax NVAX, Axsome Therapeutics AXSM, Theravance Biopharma TBPH and Prothena PRTA are all slated to release theirquarterly results on Nov. 12, 2024. While AZN, NVAX and AXSM are scheduled to release results before the opening bell, TBPH and PRTA will report after market close. Let’s see how these biotech/pharma companies are likely to have performed in the soon-to-be-reported quarter.
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AstraZeneca
AstraZeneca has a mixed earnings track recordover the trailing four quarters. The company’s earnings beat estimates in three of the last four quarters, missing the mark on one occasion. On average, AZN registered an earnings surprise of 4.74% in the last four quarters. In the last reported quarter, AstraZeneca beat earnings estimates by 3.13%.
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For the quarter to be reported, AstraZeneca has an Earnings ESP of +0.66% and a Zacks Rank #3, indicating a positive surprise. The Zacks Consensus Estimate for AZN’s earnings is pegged at $1.01 per share. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sales of AstraZeneca’s key medicines, mainly cancer drugs — Lynparza, Tagrisso and Imfinzi — and diabetes medicine Farxiga, are expected to have primarily driven the company’s top line in the third quarter, backed by strong demand trends.
The biotech firm’s performance has been dismal, with the company missing earnings expectations in three of the trailing four quarters while meeting the mark on one occasion. It delivered a negative four-quarter earnings surprise of 52.42%, on average. In the last reported quarter, Novavax missed earnings estimates by 45.60%.
For the quarter to be reported, Novavax has an Earnings ESP of -0.29% and currently carries a Zacks Rank #3. The Zacks Consensus Estimate for NVAX’s loss per share is pegged at 87 cents.
Vaccine sales for Novavax are expected to be minimal during the quarter. Although the company did secure the FDA’s authorization for an updated version of its protein-based COVID-19 vaccine in August, it was delayed in comparison to the approvals/authorizations granted to mRNA-based vaccines marketed by rivals Pfizer and Moderna. This earlier head-start for PFE and MRNA is likely to have hurt NVAX’s sales.
Novavax, Inc. Price and Consensus
Novavax, Inc. Price and Consensus
Novavax, Inc. price-consensus-chart | Novavax, Inc. Quote
Axsome Therapeutics
Axsome has a mixed earnings track recordover the trailing four quarters. The company’s earnings beat estimates in three of the last four quarters, missing the mark on one occasion. On average, AXSM registered an earnings surprise of 11.75% in the last four quarters. In the last reported quarter, Axsome beat the earnings estimate by 4.62%.
For the quarter to be reported, Axsome has an Earnings ESP of -7.45% and a Zacks Rank #3. The Zacks Consensus Estimate for AXSM’s loss per share is pegged at $1.38.
Axsome’s revenues in the third quarter are likely to have benefited from the strong sales of its two marketed products, Auvelity (AXS-05) for major depressive disorder and Sunosi (solriamfetol) for narcolepsy.
Axsome Therapeutics, Inc. Price and Consensus
Axsome Therapeutics, Inc. Price and Consensus
Axsome Therapeutics, Inc. price-consensus-chart | Axsome Therapeutics, Inc. Quote
Theravance Biopharma
Theravance has a mixed earnings track recordover the trailing four quarters. The company’s earnings beat estimates in three of the last four quarters, missing the mark on one occasion. On average, TBPH registered an earnings surprise of 68.30% in the last four quarters. In the last reported quarter, Axsome missed earnings estimates by 44.44%.
For the quarter to be reported, Theravance has an Earnings ESP of 0.00% and caries a Zacks Rank #2. The Zacks Consensus Estimate for TBPH’s loss per share is pegged at 10 cents.
Theravance’s top line is likely to have been boosted by higher collaboration revenues from Viatris for Yupelri (revefenacin) sales. The companies share U.S. profits and losses received in connection with the commercialization of the drug.
Theravance Biopharma, Inc. Price and Consensus
Theravance Biopharma, Inc. Price and Consensus
Theravance Biopharma, Inc. price-consensus-chart | Theravance Biopharma, Inc. Quote
Prothena
Prothena has a mixed earnings track recordover the trailing four quarters. The company’s earnings beat estimates in two of the last four quarters, missing the mark on the remaining two occasions. On average, PRTA registered an earnings surprise of 113.44% in the last four quarters. In the last reported quarter, Prothena beat earnings estimates by 220.79%.
For the quarter to be reported, Prothena has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for PRTA’s loss per share is pegged at $1.18.
In the absence of a marketed product, Prothena’s top line is expected to have been boosted by collaboration revenue recognized from partners. The company is also expected to provide updates on its pipeline candidates for several neurodegenerative and rare peripheral amyloid diseases.
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