Biogen’s Upcoming Earnings Forecast Amid Yearly Challenges
With a market cap of $17.4 billion, Biogen Inc. (BIIB) stands as a global leader in biotechnology, specializing in the discovery and development of innovative therapies for serious neurological and neurodegenerative diseases. Its treatment portfolio includes options for multiple sclerosis, spinal muscular atrophy (Spinraza), Alzheimer’s disease (Aduhelm), ALS (QALSODY), along with several biosimilars and active collaborations in the biotech sector. BIIB is scheduled to release its fiscal Q1 2025 earnings results before the market opens on Thursday, May 1.
As this event approaches, analysts predict the Cambridge, Massachusetts-based company will report a profit of $3.34 per share, reflecting a nearly 9% decline from $3.67 per share in the same quarter last year. It is worth noting that Biogen has exceeded Wall Street’s bottom-line expectations for the past four quarters. In Q4 2024, the company slightly surpassed the consensus EPS estimate.
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For fiscal 2025, analysts forecast Biogen’s EPS will reach $15.52, indicating a 5.8% reduction from $16.47 in fiscal 2024. Nonetheless, a modest recovery is anticipated, with EPS projected to grow by 2.4% year-over-year to $15.89 in fiscal 2026.
Over the past year, BIIB has underperformed relative to the broader markets, with shares declining by 39.5%. In comparison, the S&P 500 Index ($SPX) has recorded a 4.9% gain, while the Health Care Select Sector SPDR Fund (XLV) saw a 3.2% decline.
On February 12, shares of Biogen dipped 4.3% after the company released a disappointing profit forecast for 2025, estimating adjusted EPS between $15.25 and $16.25, which fell short of analysts’ expectations. The forecast also indicated a mid-single-digit percentage decline in overall revenue, further pressured by challenges in its multiple sclerosis segment and a foreign exchange impact of $0.35 per share. Although Q4 earnings reached $3.44 per share and new drugs like Leqembi and Skyclarys showed promising sales, the weaker outlook overshadowed these gains.
Currently, analysts hold a moderately optimistic outlook on BIIB, awarding it a “Moderate Buy” rating overall. Among the 33 analysts covering the stock, there are 14 “Strong Buys,” one “Moderate Buy,” and 18 “Holds.” The average price target for BIIB stands at $190.48, indicating a potential upside of 61.1% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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