Biogen's Q2 Numbers, Outlook Exceed Street Expectations

Biogen Inc BIIB reported 13 percent year-over-year increase in net income for the second quarter driven by 12 percent growth in total revenue. Its adjusted earnings, which witnessed 23 percent year-over-year growth, provided a positive surprise of 11.6 percent. The company also provided an upbeat forecast for the full year apart from authorizing a fresh share repurchase program.

The company reported net income attributable to its shareholders of $1.0 billion or $4.79 a share. On an adjusted basis, it would have earned $1.1 billion or $5.21 a share in the second quarter. This was $0.54 a share higher than the Street expectations of $4.67 a share. While adjusted profit advanced 15 percent, adjusted EPS grew 23 percent on a YOY basis.

Biogen said its total revenue grew 12 percent to $2.9 billion driven by global increase in its multiple sclerosis and hemophilia businesses. This exceeded analysts' predictions of $2.79 billion.

CEO George Scangos commented, "Revenue strength coupled with thoughtful management of expenses helped drive healthy earnings growth for the quarter. As a result, we have raised our financial guidance for the full year. Our Board has also authorized a $5 billion share repurchase program. We believe this allows us to return capital to shareholders, while leaving ample room for strategic flexibility."

Going forward, Biogen expects adjusted earnings to be $19.70-$20.00 a share for the full year. On a GAAP basis, the company sees EPS between $18.10 and $18.40 on revenue of $11.2-$11.4 billion. Analysts are looking for earnings of $18.96 a share and $11.28 billion for the full year.

In pre-market on Thursday, the stock traded 5.77 percent higher.