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Drug/Biotech Stocks' Q1 Earnings Due Apr 27: LLY, ABBV & More

The first-quarter 2023 reporting cycle of the Medical sector is about to pick up pace this week. The sector mainly comprises pharma/biotech and medical device companies.

The earnings season for the Medical sector kicked off last week when bellwether Johnson & Johnson reported better-than-expected first-quarter results. It beat estimates for earnings as well as sales. All three segments, Pharmaceutical, MedTech and Consumer Health, delivered a strong performance in the quarter, gaining from solid demand trends for its products. Among the biotechs, Biogen reported its first-quarter results this week, beating estimates on both earnings and revenues. It maintained its previously-issued financial outlook for 2023.

The Earnings Trends report states that as of Apr 19, 8.8% of the companies in the Medical sector — representing 27.5% of the sector’s market capitalization — reported quarterly earnings. 100% of participants have outperformed on both earnings and revenues so far. Earnings decreased 2.4% year over year, while revenues increased 9.8%. Overall, first-quarter earnings of the Medical sector are expected to decline 22.4%, while sales are expected to rise 1% from the year-ago quarter.

Eli Lilly LLY, AbbVie ABBV, Bristol Myers BMY, Merck MRK and Gilead Sciences GILD are scheduled to release first-quarter earnings on Apr 27. While LLY, ABBV, BMY and MRK are set to report before the opening bell, GILD will report after market close.

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Let’s see how the biotech/pharma companies mentioned above might have performed in the soon-to-be-reported quarter.

Eli Lilly

Lilly has a mixed earnings track record so far. LLY’s earnings beat estimates in three of the trailing four quarters while missing the mark on one occasion, delivering an average negative surprise of 0.73%. In the last reported quarter, Lilly’s earnings beat estimates by 14.21%.

Our proven model indicates that the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

For the quarter to be reported, Lilly has an Earnings ESP of +0.83% and a Zacks Rank #3, implying a likely earnings surprise. The Zacks Consensus Estimate and our model estimate for adjusted EPS are pegged at $1.73 and $1.63 per share, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the first quarter, higher demand and volume growth for Lilly’s key drugs, including Trulicity, Taltz, Verzenio, Jardiance and Emgality are likely to have provided top-line support, along with contributions made by newer products like Retevmo and Mounjaro.

Eli Lilly and Company Price and EPS Surprise

Eli Lilly and Company Price and EPS Surprise
Eli Lilly and Company Price and EPS Surprise

Eli Lilly and Company price-eps-surprise | Eli Lilly and Company Quote

AbbVie

AbbVie has an encouraging earnings track record to date. ABBV’s earnings beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 1.66%. In the last reported quarter, AbbVie’s earnings beat estimates by 1.69%.

For the quarter to be reported, AbbVie has an Earnings ESP of -0.71% and a Zacks Rank #3. The Zacks Consensus Estimate and our model estimate for earnings are pegged at $2.45 and $2.40 per share, respectively.

AbbVie’s top line is expected to have been driven by sales of new immunology drugs, Skyrizi and Rinvoq, which registered strong growth in the past few quarters. This trend is expected to have continued in the to-be-reported quarter.

AbbVie Inc. Price and EPS Surprise

AbbVie Inc. Price and EPS Surprise
AbbVie Inc. Price and EPS Surprise

AbbVie Inc. price-eps-surprise | AbbVie Inc. Quote

Bristol Myers

Bristol Myers has a decent earnings track record so far. It beat earnings estimates in all the last four quarters, delivering an average earnings surprise of 6.27%. In the last reported quarter, BMY beat earnings estimates by 6.43%.

For the quarter to be reported, Bristol Myers has an Earnings ESP of +0.28% and a Zacks Rank #3, implying a likely earnings surprise. The Zacks Consensus Estimate and our model estimate for earnings are pegged at $1.98 and $1.94 per share, respectively.

BMY’s first-quarter revenues are likely to have been driven by improving growth trends of key drugs, Eliquis, Opdivo, Pomalyst, Orencia and Yervoy. Contributions from new drugs like Reblozyl and Opdualag are also likely to have boosted the top line.

Our previous article showed that BMY did not have the favorable combination to beat earnings in the soon-to-be-reported quarter. However, estimates changed thereafter and we are more certain of a beat now.

Bristol Myers Squibb Company Price and EPS Surprise

Bristol Myers Squibb Company Price and EPS Surprise
Bristol Myers Squibb Company Price and EPS Surprise

Bristol Myers Squibb Company price-eps-surprise | Bristol Myers Squibb Company Quote

Merck

Merck has an encouraging earnings track record to date. It  beat earnings estimates in each of the last four quarters, delivering an average earnings surprise of 11.21%. In the last reported quarter, MRK beat earnings estimates by 3.85%.

For the quarter to be reported, Merck has an Earnings ESP of -0.72% and a Zacks Rank #3. The Zacks Consensus Estimate and our model estimate for earnings are pegged at $1.34 and $1.41 per share, respectively.

Strong global underlying demand across its business, particularly for cancer drug Keytruda and HPV vaccine, Gardasil, are likely to have boosted sales growth in the first quarter like several previous quarters.

Merck & Co., Inc. Price and EPS Surprise

Merck & Co., Inc. Price and EPS Surprise
Merck & Co., Inc. Price and EPS Surprise

Merck & Co., Inc. price-eps-surprise | Merck & Co., Inc. Quote

Gilead Sciences

Gilead boasts an excellent earnings track record so far. It beat earnings estimates in each of the last four quarters, delivering an average earnings surprise of 16.92%. In the last reported quarter, GILD beat earnings estimates by 11.33%.

For the quarter to be reported, Gilead has an Earnings ESP of -6.48% and a Zacks Rank #3. The Zacks Consensus Estimate and our model estimate for earnings are pegged at $1.63 and $1.50 per share, respectively.

Gilead’s increased sales in oncology, HIV and hepatitis C virus drugs, partially offset by lower Veklury (remdesivir) sales, are expected to have driven revenues in the first quarter.

Our previous article showed that GILD had the favorable combination to beat earnings in the soon-to-be-reported quarter. However, estimates changed thereafter and we are not certain of a beat now.

Gilead Sciences, Inc. Price and EPS Surprise

Gilead Sciences, Inc. Price and EPS Surprise
Gilead Sciences, Inc. Price and EPS Surprise

Gilead Sciences, Inc. price-eps-surprise | Gilead Sciences, Inc. Quote

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Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report

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