Actavis, Inc. (
is scheduled to report second quarter 2013 earnings before the
opening bell on Jul 25, 2013. We expect the company to beat
expectations in the second quarter.
Why a Likely Positive Surprise
Our proven model shows that Actavis is likely to beat earnings
because it has the right combination of two key ingredients.
(Expected Surprise Prediction): This is because the Most Accurate
Estimate stands at $2.02 while the Zacks Consensus Estimate is
lower at $1.99 per share. This results in a difference of
Zacks Rank #2 (Buy)
: Note that stocks with a 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 revisions.
The combination of Actavis' Zacks Rank #2 and an ESP of +1.51%
makes us confident of an earnings beat on Jul 25.
What is Driving the Better-than-Expected Earnings
Actavis is a leading specialty pharmaceutical company engaged
in the development, manufacturing, marketing, sale and
distribution of generic, branded generic, brand, biosimilar and
over-the-counter (OTC) pharmaceutical products.
Actavis, the third largest generics pharma company in the
world, develops, manufactures and sells generic pharmaceutical
products. Sales should benefit from the launch of generic
versions of Lidoderm, Zovirax, Zometa and Suboxone.
While Actavis continues to work on driving generic product
sales, the company is also working on strengthening its branded
product portfolio. The company's branded product portfolio
consists of more than 40 product families including Androderm,
Kadian, Crinone, and Generess, among others. Moreover, new
products like Rapaflo, Gelnique and Trelstar should help boost
Other Stocks to Consider
Actavis is not the only company looking up this earnings
season. We also see likely earnings beat coming from these
Biogen Idec. (
has Earnings ESP of +2.19% and holds a Zacks Rank #3 (Hold).
Biogen will be reporting second quarter earnings on Jul 25 before
the market opens.
has Earnings ESP of +2.13% and holds a Zacks Rank #2. Momenta
will be reporting second quarter earnings on Aug 1 before the
Teva Pharmaceutical Industries Limited (
has Earnings ESP of +0.85% and holds a Zacks Rank #3. Teva will
be reporting second quarter earnings on Aug 1.
ACTAVIS INC (ACT): Free Stock Analysis Report
BIOGEN IDEC INC (BIIB): Free Stock Analysis
MOMENTA PHARMA (MNTA): Free Stock Analysis
TEVA PHARM ADR (TEVA): Free Stock Analysis
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