Technology

What's in Store for Bayer (BAYRY) This Earnings Season?

Bayer Aktiengesellschaft BAYRY is scheduled to report first-quarter 2019 results on Apr 25.

Bayer has surpassed expectations in the previous four quarters, the average positive earnings surprise being 6.98%.

The stock has dipped 2.3% in the past year compared with the industry’s decline of 0.9%.

 

Let's see how things are shaping up for this announcement.

Factors to Consider

In 2018, Bayer undertook a series of portfolio, efficiency and structural measures, including exiting the Animal Health business unit, and the Consumer Health brands, Coppertone and Dr. Scholl’s, to strengthen its position. The company also plans to sell its 60% interest in German site services provider, Currenta. The company completed the acquisition of Monsanto in June 2018.

The combined enterprise will enable Bayer to bring innovations to the market faster, and provide customers with better solution. In December 2018, Visanne was approved by the Chinese regulatory authorities for the treatment of endometriosis. The drug is a once-daily oral tablet containing dienogest 2 mg that has been developed specifically for the treatment of this chronic gynecological disease.

In August 2018, the FDA approved Jivi (BAY94-9027) for the routine prophylactic treatment of hemophilia A in previously-treated adults and adolescents aged 12 years or older in the United States. The FDA also approved the same for on-demand treatment and perioperative management of bleeding in the same population.

Jivi is a long acting PEGylated recombinant human Factor VIII (rFVIII) replacement therapy. In November 2018, the drug (BAY94-9027) was approved by the European Commission for the treatment and prophylaxis of bleeding in previously-treated patients aged 12 years or older with hemophilia A.

Sales of these drugs should boost revenues for the company during the first quarter of 2019.

Bayer is developing Darolutamide for the treatment of non-metastatic castration-resistant prostate cancer (nmCRPC). In February 2019, the company completed the rolling submission of a new drug application (NDA) for darolutamide to the FDA.

However, Bayer is facing generic competition for many of its products, including the Yaz franchise (oral contraceptives).

What Our Model Indicates

Our proven model does not conclusively show that Bayer is likely to beat earnings in the to-be-reported quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates. But that is not the case here, as you will see below.

Earnings ESP: Bayer has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at 47 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #2.

Note that Sell-rated stocks (Zacks Rank #4 or 5) going into an earnings announcement are best avoided.

Bayer Aktiengesellschaft Price and EPS Surprise

Bayer Aktiengesellschaft Price and EPS Surprise | Bayer Aktiengesellschaft Quote

Stocks That Warrant a Look

Here are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.

Pfizer Inc. PFE has an Earnings ESP of +0.65% and a Zacks Rank #3. The company is scheduled to release its first quarter 2019 results on Apr 30. You can see the complete list of today’s Zacks #1 Rank stocks here.

Glaxo SmithKline plc. GSK has an Earnings ESP of +2.63% and a Zacks Rank #3. The company is scheduled to release its first quarter 2019 results on May 1.

Novo Nordisk A/S NVO has an Earnings ESP of +0.8% and a Zacks Rank #3. The company is scheduled to release its first quarter 2019 results on May 3.

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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.