Biogen Idec Inc.
) is scheduled to report first quarter 2014 results before the
opening bell on Apr 23.
Last quarter, Biogen had posted an earnings surprise of +4.95%.
We expect the company to beat expectations in the first quarter
Why a Likely Positive Surprise?
Our proven model shows that Biogen is likely to beat earnings
because it has the right combination of two key ingredients.
Positive Zacks ESP:
(Expected Surprise Prediction), which represents the difference
between the Most Accurate estimate and the Zacks Consensus
Estimate, is +8.14%. This is a very meaningful and leading
indicator of a likely positive earnings surprise.
Zacks #1 Rank (Strong Buy):
Note that stocks with Zacks Rank #1, #2 and #3 have a
significantly higher chance of beating earnings estimates. We
caution against stocks with Zacks Ranks #4 and #5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revision momentum.
The combination of Biogen's Zacks Rank #1 (Strong Buy) and an
earnings ESP of +8.14% make us confident of an earnings beat on
What Is Driving Better-than-Expected Earnings?
Biogen has an impressive track record and delivered positive
earnings surprises in the last four quarters with an average beat
Biogen's multiple sclerosis franchise, particularly Avonex and
Tysabri should continue to perform well. Meanwhile, newly
launched Tecfidera should remain a growth driver and boost
revenues despite the presence of new entrants in the multiple
Other Stocks to Consider
Biogen is not the only company looking up this earnings
season. We also see likely earnings beats coming from these
companies in the medical sector:
Eli Lilly and Co.
) has an Earnings ESP of +4.29% and holds a Zacks Rank #3 (Hold).
Eli Lilly will report first quarter earnings on Apr 24.
) has an Earnings ESP of +1.85% and holds a Zacks Rank #2 (Buy).
Actavis will report first quarter earnings on Apr 30.
Teva Pharmaceutical Industries Ltd.
) has an Earnings ESP of +0.81% and holds a Zacks Rank #1. Teva
will report first quarter earnings on May 1.
ACTAVIS PLC (ACT): Free Stock Analysis Report
BIOGEN IDEC INC (BIIB): Free Stock Analysis
LILLY ELI & CO (LLY): Free Stock Analysis
TEVA PHARM ADR (TEVA): Free Stock Analysis
To read this article on Zacks.com click here.