Biogen Idec. (
) 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 Biogen 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 $1.87 while the Zacks Consensus
Estimate is lower at $1.83 per share. This results in a
difference of +2.19%.
Zacks Rank #3 (Hold)
: 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 Biogen's Zacks Rank #3 and an ESP of +2.19%
makes us confident of an earnings beat on Jul 25.
What is Driving the Better-than-Expected Earnings
Biogen is a biotechnology company focused on neurology,
immunology and hemophilia. Biogen's strong foothold in the
multiple sclerosis (MS) market will drive earnings in this
quarter. MS products include Avonex, Tysabri and an oral MS drug,
Tecfidera. Tecfidera - the third oral MS product to reach the
market - has the potential to become a leader.
Avonex is Biogen's lead MS product. Biogen has been working on
driving Avonex revenues. The company launched Avonex Pen in the
US last year. Avonex Pen helps in convenient administration. The
rollout of Avonex Pen in the EU and US should increase patient
and physician interest in the drug.
Tysabri is launched in new markets like India, Brazil,
Argentina, the Middle East and Southeast Asia among others, which
should drive growth.
Other Stocks to Consider
Biogen is not the only company looking up this earnings
season. We also see likely earnings beat coming from these
Actavis, Inc. (
) has Earnings ESP of +1.51% and holds a Zacks Rank #2 (Buy).
Actavis 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 Ltd. (
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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