Biogen Readies for Earnings Report Amid Revenue Challenges
Biogen Inc. (BIIB), based in Cambridge, Massachusetts, specializes in creating therapies for neurological and neurodegenerative diseases. With a market cap of $26.6 billion, the company’s portfolio addresses various ailments, including multiple sclerosis, non-Hodgkin’s lymphoma, rheumatoid arthritis, Crohn’s disease, and psoriasis. Investors are keenly awaiting the company’s fiscal third-quarter earnings for 2024, which will be released before the market opens on Wednesday, Oct. 30.
Profit Projections and Recent Performance
Analysts predict BIIB will announce a profit of $3.78 per share on a diluted basis, marking a decline of 13.3% from the $4.36 recorded in the same quarter last year. Recently, the company has successfully surpassed consensus estimates in three out of the past four quarters, though it did miss projection on one occasion.
Yearly Earnings Expectations
For the full fiscal year, analysts are expecting BIIB to report an earnings per share (EPS) of $16.14, which represents a 9.7% increase from $14.72 in fiscal 2023. Looking ahead, EPS is projected to grow by 5.5% to $17.03 in fiscal 2025.
Stock Performance Compared to S&P 500
In the past 52 weeks, BIIB stock has faced significant challenges, falling 27.8% compared to the S&P 500’s ($SPX) impressive gain of 37.5%. Similarly, it lagged behind the Health Care Select Sector SPDR Fund’s (XLV) growth of 18.2% during the same period.
Challenges Facing Biogen
BIIB’s stock struggles largely stem from setbacks related to its Alzheimer’s treatment, Leqembi, and declining sales from key multiple sclerosis medications Tecfidera and Tysabri. Although new product revenues have provided some relief, the company continues to grapple with lower contract manufacturing and royalty income.
Recent Earnings Results and Analyst Sentiment
On August 1, following its Q2 results announcement, BIIB shares dipped more than 1%. The reported revenue was $2.5 billion, showing only a slight year-over-year increase. The adjusted EPS rose 31.3% year over year to $5.28, prompting the company to adjust its full-year EPS forecast to a range of $15.75 to $16.25.
Overall, analysts maintain a reasonably optimistic view of BIIB stock, reflecting a “Moderate Buy” rating. Among the 29 analysts covering BIIB, 18 recommend a “Strong Buy,” two a “Moderate Buy,” and nine suggest a “Hold.” The average analyst price target stands at $265.96, implying a potential upside of 45.3% from current trading levels.
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On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
