Health and Healthcare

Top Health Care Earnings for the Week Ahead

biotech
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Earnings season is hitting its stride next week, and we have taken a look at companies in a variety of sectors that will be posting results next week.

The health care sector, and the biotech stocks in particular, have been on a roll for the past 12 months. The iShares Nasdaq Biotechnology ETF (NASDAQ: IBB) is up nearly 60% in the past year and more than 30% since January.

Earnings and revenue estimates may change ahead of these reports, and some companies may even change reporting dates.

Illumina Inc. (NASDAQ: ILMN) stock has gained more than 35% since the beginning of 2015. It posted a new 52-week and all-time high of $239.20 on Friday. The company makes the machines that sequence genomes, putting it at the root of virtually the entire biotech and pharma sectors that use DNA technology to detect certain illnesses. Analysts are expecting earnings per share (EPS) of $0.78 on revenues of $541.75 million, both well above results in the same quarter last year. The 52-week range on the shares is $145.12 to $239.20, and they closed at $239.76 on Friday. The consensus price target on the stock is $236.47, meaning that at its current price it is slightly overvalued. The company will announce results after markets close on Tuesday.

ALSO READ: 4 Large Cap Biotech Stocks to Buy Before Earnings

Abbott Laboratories (NYSE: ABT) is scheduled to announce earnings on Wednesday before the market opens. Analysts expect EPS of $0.50 on revenues of $5.15 billion. In the same quarter a year ago, Abbott Labs posted EPS of $0.54 on revenues of $5.08 billion. Year to date, growth has been significantly lower than Illumina’s, notching up more than 10%. But that is not bad for a company with 10 times Illumina’s sales and about twice its market cap. A total of 17 analysts have ratings on the stocks: nine rate Abbott Labs a Strong Buy, four have Buy ratings and five rate the stock a Hold. The consensus price target is $51.41 and shares closed at $49.90 on Friday, in a 52-week range of $39.28 to $50.47.

Celgene Corp. (NASDAQ: CELG) reports second-quarter results before markets open on Thursday. Following a recent share price spike, the stock is up 20% year to date and nearly 60% over the past 12 months. The company agreed earlier this week to acquire Receptos for $7.2 billion. Celgene is what some might call a serial acquirer, either buying up (Receptos and Abraxis) or investing in smaller firms (AstraZeneca). The company’s reputation as a risk taker is no joke: it licensed Thalomid (aka thalidomide) in 1992, a drug that caused horrible birth defects in the 1950s, and developed a less damaging and better treatment (Revlimid) for treating multiple myeloma. The stock closed at $134.52 on Friday and trades in a 52-week range of $83.13 to $135.98. The consensus price target is $143.67, and analysts expect EPS of $1.18 on revenues of $2.26 billion when Celgene reports.

ALSO READ: 3 Top Big Pharmaceutical Stocks With Upcoming Catalysts

Eli Lilly & Co. (NYSE: LLY), like Abbott Labs, seems to have been around forever. With a market cap of $92 billion, it is the second largest of the biotechs reporting next week. Analysts are looking for EPS of $0.74 on revenues of $4.89 billion for the company’s second quarter. That is 12% better and 1% worse, respectively, than the same period last year. BMO Capital Markets raised its price target on Eli Lilly’s stock from $74 to $92 on Thursday and maintained its Market Perform rating. The Thomson Reuters consensus price target from 17 analysts is $88.24. The company closed at $87.37 on Friday, in a 52-week range of $60.14 to $90.18. Like Celgene, Eli Lilly reports before the market opens on Thursday.

Valeant Pharmaceuticals Inc. (NYSE: VRX), another company that will report results before markets open next Thursday, said on Friday that it would acquire Egyptian drugmaker Amoun for about $800 million. The announcement sent the share price down about 1.6%. Valeant also has a reputation as a serial acquirer, having closed an $11 billion acquisition of Salix Pharmaceuticals in March and reportedly making a $25 billion bid for animal health care leader Zoetis, which was spun out of Pfizer in 2013. Just because it lost out to Actavis’s $66 billion bid for Allergan does not mean the Valeant is about to change its game. The Canadian company is expected to post EPS of CDN$2.46 on revenues of CDN$2.55 billion. New York-traded shares closed at $236.10 on Friday, in a 52-week range of $106.00 to $246.01. The share price is up nearly 65% year to date.

Abbvie Inc. (NYSE: ABBV) reports earnings before markets open Friday, and consensus estimates call for EPS of $1.06 on revenues of $5.58 billion, a 30% year-over-year improvement in EPS and a 13% jump in revenues. Analysts at Jefferies raised their EPS estimate on the stock from $5.38 to $5.43 and reiterated their Buy rating and $90 price target. That is well above the $74.36 consensus target. Abbvie’s stock price has risen about 7% year to date, although it is up nearly 30% over the past 12 months. Most of the share price gain has come since the beginning of April. Shares closed at $69.99, on Friday in a 52-week range of $51.37 to $70.76.

ALSO READ: 5 High-Dividend Growth Stocks to Buy Now

Biogen Inc. (NASDAQ: BIIB) is the largest biotech firm announcing its earning next week. The company, which has a market cap of almost $95 billion, is expected to post EPS of $4.07 on revenues of $2.71 billion. The company has a lot riding on data expected to be released next week on whether its aducanumab drug can slow the cognitive declines associated with Alzheimer’s disease. This is a $20 billion market opportunity, according to some analysts, and Biogen may get there first. Over the past 12 months, the stock has added more than 33%. Shares are up about 19% year to date. The stock closed at $404.66 on Friday, in a 52-week range of $290.85 to $480.18.

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