Market Overview

Big Earnings Expectations For Big Biotech

  • Three leading biotech companies are expected to post quarterly results this week.
  • Analysts are looking for earnings growth from Amgen and Celgene.
  • Revenue growth is forecast for both, as well as for Biogen.

Three of the largest biotech companies will be stepping into the earnings spotlight this week, offering a look at how things fared as a rough year for the industry came to a close.

Consensus expectations of Wall Street analysts include year-on-year earnings growth from Amgen, Inc. (NASDAQ: AMGN) and Celgene Corporation (NASDAQ: CELG), but only marginal revenue increases at Amgen and Biogen Inc (NASDAQ: BIIB). With high expectations on both the top and bottom lines, Celgene seems to be the one to beat.

Below is a quick look at what is expected from the reports of these three stocks. That is followed by a quick peek at some of the week's other most anticipated pharmaceutical earnings.


Wall Street's fourth-quarter forecast for Amgen calls for earnings per share (EPS) to have increased from $2.16 in the year ago period to $2.29. Some 28 Estimize respondents predict EPS will be higher at $2.38. Note that both Wall Street and Estimize have underestimated EPS in recent quarters.

Revenue also topped consensus estimates in the previous period. This time, Estimize is looking for about $5.63 billion, higher than the $5.53 billion Wall Street expects. Both estimates are more than 3 percent higher than year-ago revenue. The company is scheduled to report after Thursday's closing bell.

See also: High Hopes For Ford, McDonald's and Procter & Gamble Earnings?


The Wall Street forecast calls for Biogen to post fourth-quarter EPS of $4.08, down a penny year-over-year, and for revenue to have risen more than 2 percent to $2.71 billion. Their full-year estimates are $16.59 per share (up more than 16 percent) on $10.63 billion (up more than 9 percent).

The 18 Estimize respondents see things a little differently: EPS of $4.19 and revenue of $2.74 billion for the three months that ended in December. Note that EPS and revenue exceeded the Estimize third-quarter forecasts. Biogen will share its latest results before trading starts on Tuesday.


When this biotech giant shares its results early Thursday, the consensus forecast of Estimze is that it will show a profit of $1.26 per share for the fourth quarter. That would be up from EPS of $1.01 in the same period of last year. Wall Street is looking for two pennies less, as the consensus estimate has ticked down recently.

The company's revenue for the three months that ended in December will be $2.54 billion, or nearly 22 percent higher year over year, if the 34 survey respondents are correct. That is in line with Wall Street expectations, though both over estimated revenue in the previous period.

And Others

Other pharmaceutical companies that Wall Street analysts expect to show earnings growth this week include AbbVie, Johnson & Johnson and Vertex Pharmaceuticals.

On the other hand, earnings declines are predicted for Abbott Laboratories and Bristol-Myers Squibb.

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