The first-quarter 2022 reporting cycle of the

Medical

sector is in full swing. The sector mainly comprises pharma/biotech and medical device companies.

The

Earnings Trends

report suggests that as of Apr 20, 7% of the companies in the Medical sector — representing 27.6% of the sector’s market capitalization — reported their quarterly earnings. While 100% participants beat on earnings, 75% outperform on revenues. Earnings and revenues increased 8.4% and 13.5% year over year, respectively. Overall, first-quarter earnings and sales of the Medical sector are expected to rise 10.3% and 13.3% each from the year-ago quarter’s respective reported figures.

With quite a large number of pharma and biotech bigwigs having already reported results, the earnings picture is looking reasonably well. Last week, a number of big pharma and biotech companies reported solid earnings for the first quarter.

Merck

(MRK)

beat

on both counts, driven by additional sales of oral COVID-19 drug molnupiravir. Similar to Merck, AstraZeneca and Eli Lilly beat on both earnings and sales. However, Humira-maker AbbVie’s

earnings beat but revenues missed the

mark.

Pfizer


PFE

,

Biogen


BIIB

,

Incyte Corporation


INCY

,

Esperion Therapeutics


ESPR

and

Teva Pharmaceutical


TEVA

are scheduled to release first-quarter earnings on May 3.

Let’s analyze the performance of the above-mentioned biotech/pharma companies.

Pfizer

Pfizer, which has an impressive earnings track record so far, is scheduled to report quarterly results, before market open.

PFE’s earnings beat estimates in each of the last four quarters, the average being 19.8%. In the last reported quarter, Pfizer’s earnings beat estimates by 27.1%.

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, Pfizer has an Earnings ESP of -12.46% and a Zacks Rank #3. The Zacks Consensus Estimate for earnings stands at $1.66 per share. You can see


the complete list of today’s Zacks #1 Rank stocks here


.

Key contributors to Pfizer’s sales in the first quarter are

likely to have been direct sales and alliance revenues

from its partner BioNTech for the latter’s COVID-19 vaccine Comirnaty and revenues from Pfizer’s oral antiviral pill for COVID, Paxlovid.

Biogen

Biogen, which has an impressive earnings track record so far, is scheduled to report quarterly results, before market open.

BIIB’s earnings beat estimates in each of the last four quarters, the average being 11.7%. In the last reported quarter, Biogen’s earnings beat estimates by 2.1%.

Our previous article showed that Biogen had the favorable combination to beat on earnings in the soon-to-be-reported quarter. However, estimates have changed thereafter and a surprise prediction looks difficult now.

For the quarter to be reported, Biogen has an Earnings ESP of -0.32% and a Zacks Rank of 3. The Zacks Consensus Estimate for earnings stands at $4.41 per share.

Biogen’s sales in the first quarter

are likely to have been hurt

by lower sales of Tecfidera and Spinraza. While Tecfidera is facing generic competition, Spinraza is facing competition from other approved-drugs for spinal muscular atrophy as well as pricing pressure in Europe. Sales of the new Alzheimer’s drug, Aduhelm, are likely to have been minimal as patient access is limited.

Incyte

Incyte, which has a mixed earnings track record so far, is also scheduled to report quarterly results, before market open.

Incyte’s earnings beat estimates in three of the trailing four quarters, missing the mark in one, delivering an average negative surprise of 4.7%. In the last reported quarter, INCY’s earnings missed estimates by 88.1%.

For the quarter to be reported, Incyte has an Earnings ESP of +11.89% and a Zacks Rank #5 (Strong Sell). The Zacks Consensus Estimate for earnings stands at 57 cents per share.

Patient demand for Jakafi, a first-in-class JAK1/JAK2 inhibitor, in all approved indications (polycythemiavera, myelofibrosis and refractory acute graft-versus-host disease [GvHD]) increased sequentially in the fourth quarter of 2021, a trend that

most likely continued

in the to-be-reported quarter as well.

Esperion Therapeutics

Esperion Therapeutics, which has a mixed earnings track record so far, is scheduled to report quarterly results, before the opening bell.

ESPR’s earnings beat estimates in three of the trailing four quarters and missed the mark on one occasion, the average negative surprise being 7%. In the last reported quarter, Esperion’s earnings beat estimates by 23.7%.

For the quarter to be reported, Esperion has an Earnings ESP of +5.40% and is Zacks #3 Ranked,indicating a likely earnings surprise. The Zacks Consensus Estimate is pegged at a loss of 96 cents per share.

Esperion’s approved drugs, such as Nexletol and Nexlizet, have demonstrated an encouraging uptake since their approval in the United States and Europe in 2020. The prescriptions for the drugs increased sequentially every quarter in 2021, a trend that most likely continued in the to-be-reported quarter as well.

Teva Pharmaceutical

TEVA, which has a decent earnings record so far, is scheduled to report quarterly results, before market open.

Teva Pharmaceutical’s earnings beat estimates in three of its trailing four quarters and missed the mark just once, the average surprise being 1.7%. In the last reported quarter, TEVA’s earnings beat estimates by 4.1%.

Teva Pharmaceutical has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for earnings stands at 55 cents per share.

Stay on top of upcoming earnings announcements with the

Zacks Earnings Calendar

.

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