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Drug Stocks Q4 Earnings Slated for Feb 16: ALXN, ZTS & More

The Q4 earnings season is on its last legs as results from 358 S&P 500 members or 71.6% of the index's total membership is already out. As of Feb 15, 2017, 358 S&P 500 members that account for 81.2% of the index's total market capitalization have reported results, according to the latest Earnings Preview report.

Total earnings for these 358 index members were up 6.1% from the year-ago quarter on 4.6% improvement in revenues. The beat ratio was 69% for earnings and 54.7% for revenues.

The Q4 earnings season seems to be an extremely favorable one with the highest growth in two years. Also, total earnings are likely to set a new quarterly record this time around.

However, the picture is not quite the same for pharmaceutical companies this season. Among the pharma companies that reported results last week, Gilead Sciences, Inc. GILD and GlaxoSmithKline GSK beat estimates for both earnings and sales. However, Gilead saw its shares declining in spite of the earnings beat owing to its lackluster 2017 guidance. Glaxo's outlook for 2017 was also weak amid a potential entry of generics for Advair.

On the other hand, Regeneron Pharmaceuticals, Inc. REGN missed both earnings and revenue estimates. The outlook for 2017 did not appease investors either.

Sanofi's SNY reported mixed Q4 results. The company posted year-over-year increase in revenues but a decrease in earnings as higher sales were offset by a rise in operating costs and taxes.

Here we have four pharma/biotech companies that are set to report Q4 results on Feb 16. Let's see how things are shaping up for this quarter.

Zoetis Inc. ZTS

Zoetis Inc. (ZTS), which is scheduled to release Q4 earnings before the market opens, delivered a positive surprise of 12.93% in the last quarter. The biopharmaceutical company's performance was encouraging in the recent past as its earnings surpassed expectations in all of the last four quarters with an average positive surprise of 12.93%.

Our proven model does not conclusively show that Zoetis is likely to beat on earnings this quarter. This is because the company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate is pegged at 45 cents.

Zoetis Inc. Price and EPS Surprise

Zoetis Inc. Price and EPS Surprise | Zoetis Inc. Quote

Please note that we caution against the Sell-rated stocks (Zacks Rank #4 or 5) going into an earnings announcement, especially when a firm is seeing negative estimate revisions.

The company expects companion animal business to be the main contributor to growth in Q4. (Read more: Will Zoetis Disappoint Estimates This Earnings Season? ).

You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Alexion Pharmaceuticals, Inc. ALXN

Alexion, which is scheduled to release earnings before the market opens, delivered a positive surprise of 13.46% in the last quarter. The biopharmaceutical company's performance has been mixed so far. Its earnings beat expectations in two of the last four quarters and missed the same in the other two, with an average positive surprise of 1.68%.

For this quarter, Alexion has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate is pegged at $1.10.

Alexion Pharmaceuticals, Inc. Price and EPS Surprise

Alexion Pharmaceuticals, Inc. Price and EPS Surprise | Alexion Pharmaceuticals, Inc. Quote

The company expects its new products like Kanuma and old products like Soliris to contribute meaningfully to the top line. It anticipates earnings to be driven by cost savings and share buybacks. (Read more: Alexion Q4 Earnings: Can the Stock Pull a Surprise? ).

Agios Pharmaceuticals, Inc. AGIO

Agios is scheduled to announce results before the opening bell. Agios' earnings history is disappointing. The company's earnings surpassed expectations in only one of the last four quarters. It has an average negative surprise to 77.80% for the trailing four quarters.

Last quarter, Agios recorded a negative surprise of 7.95%. The Zacks Consensus Estimate for Q4 is pegged at a loss of $1.55.

Agios Pharmaceuticals, Inc. Price and EPS Surprise

Agios Pharmaceuticals, Inc. Price and EPS Surprise | Agios Pharmaceuticals, Inc. Quote

The company has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

As a development-stage company, Agios does not have approved products in its portfolio yet. Investors are thus expected to keep an eye on pipeline updates at the company. (Read more: Agios Pharmaceuticals Q4 Earnings: What's in Store? )

Ultragenyx Pharmaceutical Inc. RARE

Ultragenyx's bottom-line performance has been disappointing in the recent past. Its earnings outpaced expectations in only one of the last four quarters with an average negative surprise to 9.26%.

Last quarter, Ultragenyx recorded a negative surprise of 5.13%. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at a loss of $1.74.

Ultragenyx Pharmaceutical Inc. Price and EPS Surprise

Ultragenyx Pharmaceutical Inc. Price and EPS Surprise | Ultragenyx Pharmaceutical Inc. Quote

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Sanofi (SNY): Free Stock Analysis Report

GlaxoSmithKline PLC (GSK): Free Stock Analysis Report

Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report

Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report

Gilead Sciences, Inc. (GILD): Free Stock Analysis Report

Agios Pharmaceuticals, Inc. (AGIO): Free Stock Analysis Report

Zoetis Inc. (ZTS): Free Stock Analysis Report

Ultragenyx Pharmaceutical Inc. (RARE): 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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