Regeneron Pharmaceuticals, Inc.
) is set to report its fourth quarter 2013 results on Feb 11
before the opening bell. Last quarter it posted a +104.04%
surprise. Let's see how things are shaping up for this
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REGENERON PHARM (REGN): Free Stock Analysis
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Growth Factors this Quarter
Regeneron's third quarter 2013 earnings breezed past the Zacks
Consensus Estimate primarily on the back of strong sales of its
eye drug, Eylea. We note that Regeneron has co-developed Eylea
with the HealthCare unit of
). Eylea is expected to continue performing well in the coming
quarters as well. Regeneron also managed to post positive
earnings surprises in all of the last four quarters, with an
average beat of 49.95%.
However, a number of negatives are likely to mar the overall
results of Regeneron in the fourth quarter. Results will be
affected by higher research and development expenses as Regeneron
continues to develop its pipeline. Moreover, selling, general and
administrative costs will increase due to costs associated with
the marketing of Eylea. In addition to that, Regeneron's other
two marketed drugs, Arcalyst and Zaltrap, are operating in highly
competitive markets and will contribute meagerly to fourth
Our proven model does not conclusively show that Regeneron is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
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 Regeneron is 0.00% since the Most Accurate
Estimate stands at 99 cents, in line with the Zacks Consensus
Zacks Rank #4 (Sell):
Regeneron's Zacks Rank #4 makes matters worse. We caution against
stocks with Zacks Rank #4 and 5 (Sell-rated stocks) going into
the earnings announcement, especially when the company is seeing
negative estimate revisions, as is the case here.
Other Stocks to Consider
Here are other companies you may want to consider as our model
shows they have the right combination of elements to post an
earnings beat this quarter:
Aratana Therapeutics, Inc.
) has an earnings ESP of +8.70% and holds a Zacks Rank #2 (Buy).
Pluristem Therapeutics, Inc.
) has an earnings ESP of +7.69% and holds a Zacks Rank #3