Regeneron Earnings: Small Growth Expected, Driven By Eylea

Regeneron Pharmaceuticals Inc REGN is scheduled to announce its first quarter financial results on Thursday, and both the crowd and experts expect to see some growth, although the Street is slightly more bullish.

According to Estimize, Wall Street analysts model consensus earnings of $2.85 per share on revenue of $822.92 million, while Main Street projects consensus earnings of $2.84 per share on revenue of $834.72 million. These figures compare to earnings of $2.79 per share on revenue of $802.33 million reported last quarter, and earnings of $2.26 per share on revenue of $626 million registered in the first quarter of 2014.

The chart above illustrates Regeneron’s history of actual earnings versus estimates.

Related Link: Regeneron Bounces Higher Off Support

It is also possible to check out how sentiment has changed over time.

While the crowd’s consensus surged slowly but consistently over the past months, the Street’s consensus hit a high of $2.96 per share on mid-January, and then fell close to current estimates.

One Driver In Sight

As stated by a recent Zacks article, “Eye drug, Eylea is the key growth driver at Regeneron.” Regeneron co-developed Eylea in conjunction with Bayer’s HealthCare unit. As part of the agreement, Regeneron collects the entire U.S. sales, while equally sharing revenue from overseas territories with Bayer.

“In the fourth quarter, U.S. sales of Eylea showed an improvement of 16.4% sequentially. In 2015, the company expects U.S. Eylea sales to grow 25–30% year over year,” the analysts say. “We believe sales of the eye drug could improve going forward benefiting from the inclusion of diabetic retinopathy, diabetic macular edema and macular edema after branch retinal vein occlusion indications in its label.”