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Drug Stock Earnings to Watch on Oct 26: BIIB, MDCO & More

With Q3 earnings picking up pace, approximately 116 S&P 500 members (representing 23.2% of the index's total market capitalization) have already reported quarterly results as of Oct 21. An impressive 80.2% of these companies managed to post an earnings beat, while 62.9% recorded better-than-expected sales.

As per our Earnings Preview report, earnings at the sector will improve 3.7% year over year on 7.4% higher revenues in Q3.

How has the Medical Sector Fared So Far?

As of Oct 21, 11.3% companies in the Medical sector have reported results, recording a blended beat of 50% (the percentage of companies that have beaten both earnings and revenue estimates). Overall the sector has registered 15.9% earnings growth on 8.8% higher revenues.

Healthcare giant and industry bellwether, Johnson & Johnson JNJ reported strong third-quarter results with both its earnings and revenues beating estimates. The company also raised the low end of its earnings outlook for the full year. (Read More: J&J Outshines in Q3 Earnings on Strong Pharma Sales ). A couple of other companies that released earnings last week included - Abbott Laboratories ABT and Roche Holding AG RHHBY . Abbott Labs' quarterly earnings beat the Zacks Consensus Estimate for earnings and delivered in-line revenues, while Roche's quarterly sales fell marginally short of expectations.

Let's take a sneak peek at four companies in the medical sector that are scheduled to report third-quarter results on Oct 26.

Multiple sclerosis (MS) market leader Biogen Inc.BIIB is scheduled to report results before the opening bell. Biogen has beaten expectations in all of the past four quarters, bringing the average earnings surprise to +11.39%. The company currently has an Earnings ESP of +0.20% and carries a Zacks Rank #3 (Hold), increasing its odds of beating earnings this quarter. You can see the complete list of today's Zacks #1 Rank stocks here .

The Zacks Consensus Estimate for the quarter is pegged at $4.97 per share. The first progressive multifocal leukoencephalopathy (PML)-related death of a patient using Biogen's oral MS drug, Tecfidera, brought the drug under the spotlight and during the upcoming earnings call, we expect investors to focus remain on the drug's performance. (Read more: Can Biogen Keep the Earnings Streak Alive in Q3? )

Our previous article shows that Biogen was unlikely to beat earnings this quarter. However, estimates changed thereafter and we are reasonably confident about an earnings beat this season. Please check our Earnings ESP Filter that enables you find stocks that are expected to come out with earnings surprises.

BIOGEN INC Price and EPS Surprise

BIOGEN INC Price and EPS Surprise | BIOGEN INC Quote

Parsippany, NJ-based The Medicines CompanyMDCO will also be reporting before market opens. This biopharmaceutical company focuses on advancing the treatment of critical care patients through the delivery of innovative, cost-effective medicines to the worldwide hospital marketplace. Its track record has been quite encouraging with the company delivering positive surprises thrice in the last four quarters. The average earnings surprise for the four trailing quarters is +11.16%. The combination of its Zacks Rank #3 (Hold) and Earnings ESP of +23.31 makes us reasonably positive for an earnings beat this quarter. The Zacks Consensus Estimate for the quarter is pegged at a loss of $1.33.

MEDICINES CO Price and EPS Surprise

MEDICINES CO Price and EPS Surprise | MEDICINES CO Quote

Orthopedic medicines company Anika Therapeutics Inc.ANIK is scheduled to report results after the market closes . Focused on improving the lives of patients with degenerative orthopedic diseases and traumatic conditions, the company offers innovative and differentiated therapeutic pain management solutions. Anika's track record has been impressive so far, having beaten estimates in all of the last four quarters. The company's average earnings surprise over the last four quarters is +42.19%. However, we are not sure of an earnings beat this quarter. Though the company's Zacks Rank #3 enhances the predictive power of the ESP, its 0.00% ESP makes surprise prediction difficult. The Zacks Consensus Estimate for the quarter is pegged at 47 cents. Going forward, the company's lead viscosupplementation products - Orthovisc and Monovisc - should continue acting as the main revenue drivers.

ANIKA THERAPEUT Price and EPS Surprise

ANIKA THERAPEUT Price and EPS Surprise | ANIKA THERAPEUT Quote

Molecular diagnostics company Exact Sciences Corporation 's EXAS track record has been decent so far, with the company surpassing expectations in three of the last four quarters. It has an average earnings surprise of +9.48%. The company, which specializes in cancer genetics testing and information services, currently carries a Zacks Rank #3, which when combined with its +6.98% Earnings ESP, makes us reasonably confident of a positive earnings this season. The Zacks Consensus Estimate for the quarter is pegged at a loss of 43 cents.

EXACT SCIENCES Price and EPS Surprise

EXACT SCIENCES Price and EPS Surprise | EXACT SCIENCES Quote

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ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report

JOHNSON & JOHNS (JNJ): Free Stock Analysis Report

ABBOTT LABS (ABT): Free Stock Analysis Report

MEDICINES CO (MDCO): Free Stock Analysis Report

BIOGEN INC (BIIB): Free Stock Analysis Report

ANIKA THERAPEUT (ANIK): Free Stock Analysis Report

EXACT SCIENCES (EXAS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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