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Drug, Biotech Stocks' Q2 Earnings on Aug 9: EXEL, BHC & More

We are into the last round of earnings for the drug/biotech sector. Overall, it has been a better-than-expected earnings season so far for the drug and biotech sector. Most companies beat consensus EPS and revenue estimates. Though a few drug/biotech companies did lower their financial guidance, most of them either maintained or raised their guidance for the year.

Per the Zacks classification, the pharma/biotech industry comes under the broader Medical sector, which comprises pharma/biotech as well as medical device companies.

Per the Earnings Trends report, as of Jul 27, 25% of the Medical sector companies, constituting nearly 41.2% of the sector’s market capitalization, reported earnings. While 85.7% of the companies beat on earnings, 78.6% surpassed revenue estimates. Earnings increased 5.1% year over year, while revenues rose 10.7%.

Overall, second-quarter earnings of the Medical sector are expected to rise 1.1%, while revenues are projected to increase 7.9%.

Here we discuss four companies, Exelixis EXEL, Bausch Health Companies BHC, Catalyst Pharmaceuticals CPRX and Axsome Therapeutics AXSM, which are set to report second-quarter results on Aug 9.

Exelixis

This drugmaker’s earnings performance has been mixed, with its earnings beating estimates in three of the trailing four quarters, but missing the mark in one. Exelixis delivered a four-quarter earnings surprise of 208.86%, on average. In the last reported quarter, the company delivered an earnings surprise of 50.0%.

Exelixis, Inc. Price and EPS Surprise

 

 

 

 

 

Exelixis, Inc. price-eps-surprise | Exelixis, Inc. Quote

Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) have a good chance of delivering an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Exelixis has an Earnings ESP of -9.09% and a Zacks Rank #3. The Zacks Consensus Estimate for earnings stands at 20 cents per share.

Bausch Health Companies

This company’s performance has been decent, with its earnings beating estimates in three of the trailing four quarters, but missing the mark in one. The company has a four-quarter negative earnings surprise of 1.24%, on average. In the last reported quarter, Bausch Health delivered a negative earnings surprise of 30.10%.

Bausch Health Cos Inc. Price and EPS Surprise

Bausch Health Cos Inc. price-eps-surprise | Bausch Health Cos Inc. Quote

Bausch Health has an Earnings ESP of -11.24% and a Zacks Rank #5 (Strong Sell) . The Zacks Consensus Estimate for earnings stands at 89 cents per share.

Revenue growth in Bausch Pharma and Solta businessesis likely to have improved in the second quarter from the first quarter, following the recovery of the pandemic situation. Revenues in the Salix segment are likely to have improved in the second quarter on higher sales of Xifaxan (rifaximin), Trulance (plecanatide) and Plenvu. Diversified Products segment revenues are likely to have declined, continuing the trend of the previous quarters.

Catalyst Pharmaceuticals

This biotech’s performance has been rather weak with earnings beating estimates in only one of the trailing four quarters while missing in two and meeting estimates on one occasion. The company delivered a four-quarter earnings surprise of 9.62%, on average. In the last reported quarter, CPRX delivered a negative earnings surprise of 14.29%.

Catalyst Pharmaceuticals has an Earnings ESP of 0.00% and a Zacks Rank #3 company . The Zacks Consensus Estimate stands at 17 cents per share.

Axsome Therapeutics

The company’s earnings surprise history has been mixed, with its earnings beating estimates in three of the trailing four quarters, but missing the mark on one occasion. Axsome Therapeutics delivered a four-quarter earnings surprise of 2.86%, on average. In the last reported quarter, AXSM delivered a negative earnings surprise of 0.98%.

Axsome Therapeutics, Inc. Price and EPS Surprise

Axsome Therapeutics, Inc. price-eps-surprise | Axsome Therapeutics, Inc. Quote

Axsome Therapeutics has an Earnings ESP of + 22.11% and a Zacks Rank #3, suggesting a likely earnings beat. The Zacks Consensus Estimate stands at a loss of $1.19 per share.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Exelixis, Inc. (EXEL): Free Stock Analysis Report
 
Catalyst Pharmaceuticals, Inc. (CPRX): Free Stock Analysis Report
 
Axsome Therapeutics, Inc. (AXSM): Free Stock Analysis Report
 
Bausch Health Cos Inc. (BHC): Free Stock Analysis Report
 
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