Health and Healthcare

BioPharma Earnings Bracing for Merck, Pfizer, Amgen, Gilead

Pharmaceutical and Biotech investors are about to get a real show for earnings this week. Big Pharma will bring earnings from Dow Jones Industrial Average companies Merck & Co. Inc. (NYSE: MRK) and Pfizer Inc. (NYSE: PFE). Meanwhile biotech investors will get to chew over Amgen Inc. (NASDAQ: AMGN) and Gilead Sciences Inc. (NASDAQ: GILD) earnings.

What investors need to consider is that Biogen Inc. (NASDAQ: BIIB) took a lot of the earnings breath out of the biotech sector last week. Biogen’s earnings, guidance, and sales figures were so underwhelming that the report literally knocked out 22% of the value of the stock, taking its shares down to $300.03 from a prior close of $385.05 and a 52-week range of $290.85 to $480.18. That means Biogen is down over 37% from its 52-week highs. Biogen already had some wind out of its sails over mixed Alzheimer’s study results.

24/7 Wall St. has created previews for each earnings report. This includes relative performance and other key metrics.

Merck & Co. Inc. (NYSE: MRK) reports on Tuesday morning comes into earnings with shares up only 2.7% or so year to date, and up only about 1.7% from a year ago. Thomson Reuters has consensus earnings estimates of $0.81 in earnings per share and $9.8 billion in revenues, down from the same quarter a year ago of $0.85 EPS and $10.9 billion in revenue.

With shares recently trading at $57.41, the consensus analyst price target is $65.47 and the 52-week range is $52.49 to $63.62. Merck has a 3.1% dividend yield. Merck’s market cap of $162 billion and the company is in a position that it could possibly decide to break itself up in the years or quarters ahead even if it is still enjoying the benefits of its Cubist acquisition.

ALSO READ: Did Celgene Earnings Give Good Coverage for All of Biotech?

Pfizer Inc. (NYSE: PFE) also reports on Tuesday morning and is up almost 12% so far in 2015, and up almost 17% from this time a year ago. Thomson Reuters has consensus earnings estimates of $0.52 in earnings per share and $11.42 billion in revenues. This would compare to the results for same quarter a year ago of $0.58 EPS and $12.7 billion in revenue.

Pfizer shares were recently trading at $34.26, its consensus analyst price target is $38.25, and the 52-week range is $27.51 to $35.53. Pfizer has a 3.2% dividend yield. Pfizer’s market cap is $211 billion, but the company has been in a state of change beyond the Zoetis spin-off and beyond the pending Hospira acquisition.

Amgen Inc. (NASDAQ: AMGN) is due to report earnings on Thursday afternoon and is heading into earnings up only 0.6% so far in 2015 — but still up a whopping 32.2% from this time a year ago. Thomson Reuters has consensus earnings estimates of $2.43 in earnings per share and $5.32 billion in revenues. This would compare to the results for same quarter a year ago of $2.37 EPS and $5.18 billion in revenue.

With shares recently trading at $158.60, the consensus analyst price target is $178.53 and Amgen’s 52-week range is $121.66 to $173.60. Amgen has been restructuring of late. Its shares slid by 3.4% on Friday due to Biogen and the stock has a 1.9% dividend yield. Amgen’s market cap is $120 billion.

Gilead Sciences Inc. (NASDAQ: GILD) is due to report on Tuesday afternoon and comes into its earnings week up 20% so far in 2015 and up 25% versus a year ago. Thomson Reuters has consensus earnings estimates of $ in earnings per share and $ billion in revenues. This would compare to the results for same quarter a year ago of $ EPS and $ billion in revenue.

With shares recently trading at $112.80, the consensus analyst price target is $124.47 and the 52-week range is $85.95 to $123.37. Gilead was down 4.1% on Friday in sympathy with Biogen and it has a 1.5% dividend yield. Gilead is the king of biotech with its $166 billion market cap.

ALSO READ: Heavy Biotech Insider Selling of Shares

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