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Oct 23, 2024

The Zacks Analyst Blog Highlights Novo Nordisk, Novartis, Pfizer, Regeneron Pharmaceuticals and Biogen

Chicago, IL – October 23, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks

Chicago, IL – October 23, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Novo Nordisk NVO, Novartis NVS, Pfizer PFE, Regeneron Pharmaceuticals REGN and Biogen BIIB.

The earnings season for the drug and biotech sector kicked off last week when bellwether Johnson & Johnson reported strong third-quarter results, beating estimates for earnings and sales. J&J consequently raised its total revenue expectation for the year as it expects an improved performance in the rest of the year. However, the company lowered its adjusted earnings expectation due to the recent acquisition costs incurred.

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 Oct. 16, 5.2% of the Medical sector companies, constituting about 20.2% of the sector’s market capitalization, posted earnings. Among the companies that reported third-quarter earnings, 100% of them beat both earnings and revenue estimates. Earnings decreased 1.8% year over year, while revenues rose 8.1%.

Overall, fourth-quarter earnings of the Medical sector are expected to rise 6.4%, while revenues are projected to increase 8.5%.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Here, we have highlighted five large drug companies — Novo Nordisk, Novartis, Pfizer, Regeneron Pharmaceuticals and Biogen — that are expected to deliver a beat in their upcoming quarterly results.

Earnings ESP is our proprietary methodology for determining the stocks that have the best chance to deliver an earnings surprise. Earnings ESP shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. The selection can be done with the help of the Zacks Stock Screener.

Our research shows that for stocks with this combination, the chance of an earnings surprise is as high as 70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Novo Nordisk

Bagsværd, Denmark-based Novo Nordisk has an Earnings ESP of +1.02% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for the third quarter is pegged at earnings of 90 cents per share. Novo Nordisk is set to release results on Nov. 6, before the opening bell.

NVO beat estimates in three of the last four quarters while missing in one, with the average surprise being 3.18%.

Novo Nordisk’s third-quarter revenues are likely to have been boosted by the higher sales of Diabetes and Obesity Care products. Diabetes medicines like Ozempic and Rybelsus are expected to have put up a strong performance in the to-be-reported quarter. Sales of Obesity Care drugs, Saxenda and Wegovy, are likely to have been encouraging as well.

Novo Nordisk A/S price-consensus-chart | Novo Nordisk A/S Quote

Novartis

Switzerland-based Novartis has an Earnings ESP of +1.51% and carries a Zacks Rank #2. The Zacks Consensus Estimate for the third quarter is pegged at earnings of $1.94 per share. Novartis is set to release results on Oct. 29, before the opening bell.

NVS beat estimates in three of the last four quarters while missing in one, with the average surprise being 1.26%.

Novartis’ revenues in the third quarter of 2024 are likely to have been driven by key drugs like Kesimpta, Entresto, Kisqali, Cosentyx and Pluvicto.

Novartis AG price-consensus-chart | Novartis AG Quote

Pfizer

New York-based Pfizer has an Earnings ESP of +1.41% and a Zacks Rank #3. The Zacks Consensus Estimate for the third quarter is pegged at earnings of 62 cents per share. Pfizer is also set to release results on Oct. 29, before the opening bell.

PFE beat estimates in each of the last four quarters, with the average surprise being 69.82%.

Pfizer’s COVID-19 product sales are likely to have declined in the third quarter of 2024 due to lower demand. However, its top line is likely to have been driven by the increasing sales of its non-COVID products portfolio, comprising key drugs like Prevnar, Vyndaqel and Eliquis, new launches like Abrysvo, Velsipity and Penbraya, and newly acquired products, including those acquired from Seagen.

Pfizer Inc. price-consensus-chart | Pfizer Inc. Quote

Regeneron

Tarrytown, NY-based Regeneron has an Earnings ESP of +3.57% and a Zacks Rank #3. The Zacks Consensus Estimate for the third quarter is pegged at earnings of $11.82 per share. Regeneron is set to release results on Oct. 31, before market open.

REGN beat estimates in three of the last four quarters while missing in one, with the average surprise being 6.01%.

Regeneron’s revenues in the upcoming quarterly release are likely to have been boosted majorly by the sales of its blockbuster ophthalmology drug, Eylea. Increases in the sales of other marketed drugs like Dupixent (asthma) and Libtayo (oncology) are expected to have also contributed to the top line.

Regeneron Pharmaceuticals, Inc. price-consensus-chart | Regeneron Pharmaceuticals, Inc. Quote

Biogen

Based in Cambridge, MA, Biogen has an Earnings ESP of +1.14% and a Zacks Rank #3. The Zacks Consensus Estimate for the third quarter is pegged at earnings of $3.78 per share. Biogen is scheduled to release results on Oct. 30, before the market open.

BIIB beat estimates in three of the last four quarters while missing in one, with the average surprise being 10.25%.

In the third quarter, lower sales of multiple sclerosis drugs and spinal muscular atrophy drug, Spinraza, are likely to have been offset by revenues from new drugs like Skyclarys and Zurzuvae.

Biogen Inc. price-consensus-chart | Biogen Inc. Quote

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

Novartis AG (NVS) : Free Stock Analysis Report

Biogen Inc. (BIIB) : Free Stock Analysis Report

Pfizer Inc. (PFE) : Free Stock Analysis Report

Novo Nordisk A/S (NVO) : Free Stock Analysis Report

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