Market Overview

Biogen's Earnings Outlook

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Biogen (NASDAQ: BIIB) unveils its next round of earnings this Wednesday, October 21. Here is Benzinga's everything-that-matters guide for the earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings, also known as net income, is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings and Revenue

Analysts expect Biogen earnings of $8.18 per share. Revenue will likely be around $3.38 billion, according to the consensus estimate. Biogen EPS in the same period a year ago totaled $9.17. Revenue was $3.60 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of its revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates," and these consensus estimates can have a significant effect on a company's performance when it releases earnings. When a company posts earnings or revenue above or below the consensus estimate, it has posted an "earnings surprise", which can really move a stock.

If the company were to match the consensus estimate when it reports Wednesday, earnings would be down 10.8%. Revenue would be down 6.11% from the same quarter last year. Biogen's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 8.04 7.74 7.92 8.27
EPS Actual 10.26 9.14 8.34 9.17
Revenue Estimate 3.44 B 3.41 B 3.52 B 3.54 B
Revenue Actual 3.68 B 3.53 B 3.67 B 3.60 B

Stock Performance

Shares of Biogen were trading at $268.77 as of October 19. Over the last 52-week period, shares are down 3.76%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Biogen is scheduled to hold the call at 08:00:00 ET and can be accessed here: https://event.webcasts.com/starthere.jsp?ei=1386720&tp_key=14ea20d180

 

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