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Market Overview

A Preview Of Biogen's Earnings


Biogen (NASDAQ:BIIB) unveils its next round of earnings this Thursday, April 22. Here is Benzinga's everything-that-matters guide for the earnings announcement.

Net Income, Earnings, 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

Wall Street expects EPS of $5.04 and sales around $2.65 billion. In the same quarter last year, Biogen announced EPS of $9.14 on revenue of $3.53 billion.

Why Analyst Estimates And Earnings Surprises Are Important

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

If the company were to report earnings in line when it publishes results Thursday, quarterly profit would be down 44.86%. Sales would have fallen 25.01% from the same quarter last year. Biogen's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 4.87 8.13 8.04 7.74
EPS Actual 4.58 8.84 10.26 9.14
Revenue Estimate 2.80 B 3.35 B 3.44 B 3.41 B
Revenue Actual 2.85 B 3.38 B 3.68 B 3.53 B

eps graph

Stock Performance

Shares of Biogen were trading at $273.2 as of April 20. Over the last 52-week period, shares are down 7.97%. Given that these returns are generally negative, long-term shareholders are probably a little upset 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.


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Posted-In: BZI-EPEarnings