The biotech sector has been performing remarkably well driven by a wave of mergers and acquisitions, new tax legislation, and a positive regulatory backdrop. Strong Q2 earnings results have also added to the strength as most of the biotech giants such as Amgen Inc (AMGN), Gilead Sciences (GILD), Biogen Inc (BIIB) and Alexion Pharmaceuticals (ALXN) have topped the estimates on both earnings and revenues.
Earnings in Focus
Amgen reported second-quarter earnings per share of $3.83, which beat the Zacks Consensus Estimate of $3.52 and improved from the year-ago earnings of $3.27. Revenues of $6.06 billion also came ahead of the estimated $5.72 billion and were up from $5.81 billion reported in the year-ago quarter.
Amgen raised its sales and earnings guidance for 2018. Better-than-expected second-quarter results and an optimistic outlook for the rest of the year led to the increase in earnings guidance.
The company now expects its revenues in the range of $22.5-$23.2 billion compared with the previous prediction of $21.9-$22.8 billion. Adjusted earnings are now anticipated in the range of $13.30-$14.00 in 2018 compared with the previous projection $12.80-$13.70.
Gilead Sciences beat the earnings estimate by 28 cents and but 76 cents lower than the year-ago quarter. The revenue estimates were beaten by $470 million but $1493 million below the year-ago quarter.
Gilead continues to expect net product sales in the range of $20-$21 billion. The company raised its diluted, adjusted EPS guidance range to $1.50-$1.60 per share from the previously announced $1.41-$1.51.
Biogen reported a positive surprise of 11.11% on earnings and 3.3% on revenues. Earnings improved year over year by 15.08% and revenues by 9.06%.
Biogen raised its revenue expectations for the full year in the range of $13-$13.2 billion from the previous expectation of $12.7-$13 billion. The company also increased its earnings expectation from $24.20-$25.20 per share to $24.90-$25.50.
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