Biogen Inc. (BIIB) Prepares for Q4 Earnings Report Amid Market Challenges
Company Overview and Market Performance
Biogen Inc. (BIIB), based in Cambridge, Massachusetts, focuses on creating therapies for neurological and neurodegenerative diseases. With a market capitalization of $20.6 billion, the company provides treatments for various conditions including multiple sclerosis, non-Hodgkin’s lymphoma, rheumatoid arthritis, Crohn’s disease, and psoriasis. Investors await the announcement of its fiscal fourth-quarter earnings for 2024, set to take place before the market opens on Tuesday, Feb. 11.
Expected Earnings and Analyst Insights
Analysts project that Biogen will reveal a profit of $3.43 per share on a diluted basis, representing a 16.3% increase from $2.95 per share in the same quarter last year. The company has exceeded consensus estimates in three of the last four quarters, though it did fall short in another.
Looking at the entire year, experts forecast Biogen’s earnings per share (EPS) to be $16.43, marking an 11.6% rise from $14.72 in fiscal 2023.
Stock Performance Overview
Over the last year, Biogen’s stock price has fallen by 42.6%, sharply lagging behind the S&P 500’s 24.6% gains and the Health Care Select Sector SPDR Fund’s (XLV) 1% return during the same period.
The decline in Biogen’s stock can be attributed to multiple factors. Sales of its Alzheimer’s drug, Leqembi, have been sluggish. Additionally, the company faces challenges from slow-moving drug development efforts, decreasing revenue from multiple sclerosis products, high operational costs, and uncertainty regarding the acceptance of its treatments.
The stock took another hit of over 1% on Oct. 30 after the release of its Q3 earnings report. In that report, Biogen recorded an adjusted EPS of $4.08, down 6.4% from the previous year, alongside a 2.5% revenue decline to $2.5 billion, highlighting persistent market challenges.
Analyst Ratings and Future Outlook
Despite recent setbacks, analysts’ consensus on BIIB stock remains moderately optimistic, assigning a “Moderate Buy” rating overall. Of the 31 analysts monitoring the stock, 14 recommend a “Strong Buy,” one suggests a “Moderate Buy,” and 16 advise a “Hold.”
Furthermore, the average price target set by analysts for BIIB stands at $226.41, which suggests a potential upside of 60.3% from current price levels.
On the date of publication, Kritika Sarmah 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.
