Biogen Idec Inc.
) is slated to announce its second quarter results on Tuesday, July
24, before the opening bell. The Zacks Consensus Estimate for the
second quarter is $1.56 per share, 14.7% above the year-ago
earnings of $1.36.
First Quarter Highlights
Biogen reported first quarter earnings per share of $1.39, below
the Zacks Consensus Estimate of $1.44 and the year-ago earnings of
$1.42. Results were affected by higher costs. First quarter 2012
revenues, which were in-line with the Zacks Consensus Estimate,
increased 7% to $1.3 billion.
First quarter Tysabri revenues came in at $286 million, up 14% from
the prior-year period. Global in-market net revenues of Tysabri,
which is partnered with
), came in at $399 million (up 14%) in the first quarter of 2012.
Tysabri global revenues consisted of US revenues of $201 million
and Rest of the World (ROW) revenues of $198 million.
Meanwhile, Biogen's lead MS product Avonex posted first quarter
revenues of $662 million (up 3%). However, unfavorable distribution
channel dynamics impacted Avonex's global unit demand by 4%.
Agreement of Estimate Revisions
Of the 6 analysts following the stock, 2 analysts revised their
second quarter estimate upward, while none of the analysts have
trimmed their estimates in the last 30 days. There were no
revisions during the last 7 days. We believe that Tysabri will
continue its strong performance in the second quarter and this has
led to the upward estimate revisions by analysts.
For 2012, there has been a downward revision with 1 analyst
reducing estimates in the last 30 days. None of the analysts
revised their 2012 estimates in the last 7 days.
Magnitude of Estimate Revisions
The magnitude of revisions is modest over the last 30 days. The
Zacks Consensus Estimate for the second quarter of 2012 increased a
penny to $1.56 per share in the last 30 days. The Zacks Consensus
Estimate for 2012 declined by a cent to $6.15 per share in the past
30 days. Biogen expects earnings to exceed $6.15 per share in
In the last 7 days, there was no change in the Zacks Consensus
Estimate for the second quarter of 2012 and full year 2012.
BIOGEN IDEC INC (BIIB): Free Stock Analysis
ELAN CP PLC ADR (ELN): Free Stock Analysis
To read this article on Zacks.com click here.
Biogen's has delivered a positive earnings surprise in two of the
last four quarters. The company recorded a maximum of 3.97% in the
third quarter of 2011. In the first quarter of 2012, the company
delivered a negative earnings surprise of 3.47%. On average, the
earnings surprise stood at 0.09%.
We currently have a Neutral recommendation on Biogen, which carries
a Zacks #2 Rank (short-term Buy rating). Key products, Avonex and
Tysabri, should continue contributing significantly to revenues.
BG-12 should help drive long-term growth.