) is set to report second quarter 2014 results on Jul 24 before
market opens. Last quarter, the company had posted an earnings
surprise of +29.36%. Let's see how things are shaping up for this
Factors at Play
We expect Alexion Pharma to report strong revenues in the second
quarter driven by strong Soliris sales in the paroxysmal nocturnal
hemoglobinuria and atypical hemolytic uremic syndrome indications.
Moreover, a lower tax rate will also benefit results in the second
However, the bottom line should be hurt by increasing costs.
Research & development costs will increase due to the company's
efforts to develop its pipeline. Selling, general and
administrative expenses will escalate during the second quarter due
to Alexion Pharma's efforts to expand.
On the first quarter earnings call, Alexion Pharma had announced
that it has initiated the rolling submission of a Biologics License
Application for asfotase alfa in the hypophosphatasia indication.
The rolling submission is expected to be completed in the fall of
2014. We expect an update from Alexion Pharma on the status of the
asfotase alfa filing and also on its pipeline.
Our proven model does not conclusively show that Alexion Pharma
is likely to beat earnings this quarter. That is because a stock
needs to have both a positive Earnings ESP (Expected Surprise
Prediction) and a Zacks Rank of #1, 2 or 3 for this to happen. That
is not the case here as you will see below.
The Earnings ESP for Alexion Pharma is 0.00% since the Most
Accurate Estimate stands at $0.99, in line with the Zacks Consensus
Zacks Rank #3 (Hold):
Alexion Pharma's Zacks Rank #3 (Hold) has little effect on the
predictive power of ESP because the Zacks Rank #3 when combined
with a 0.00% ESP makes surprise prediction difficult.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements, i.e.,
a positive Zacks Earnings ESP and a Zacks Rank #1, #2 or #3.
) has an earnings ESP of +4.49% and carries a Zacks Rank #2. Endo
will report second quarter earnings on Jul 31 before market opens.
) has an Earnings ESP of +2.33% and holds a Zacks Rank #1.
Mallinckrodt will report third quarter earnings on Aug 7 before
) has an Earnings ESP of +26.83% and holds a Zacks Rank #3. Impax
will report second quarter earnings on Aug 6 before market
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ALEXION PHARMA (ALXN): Free Stock Analysis
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