Regeneron Pharmaceuticals: Earnings Anticipation Amidst Market Challenges
With a market cap of $77.3 billion, Regeneron Pharmaceuticals, Inc. (REGN) stands as a prominent biotechnology firm focused on developing groundbreaking treatments for various serious health issues. The company, based in Tarrytown, New York, offers a diverse range of therapies targeting eye disorders, allergies, infections, cancer, and cardiovascular diseases. As the company prepares to announce its fiscal Q4 earnings results before the market opens on Tuesday, Feb. 4, investors are keenly observing the potential outcomes.
Predicted Earnings and Yearly Forecasts
Analysts expect REGN to report a profit of $9.57 per share for the upcoming quarter, indicating a decline of nearly 6% compared to last year’s result of $10.18 per share. Recently, the company has exceeded Wall Street’s earnings expectations in three of the last four quarters, missing only once. In the latest quarter, REGN outperformed the consensus EPS estimate by 16.6%.
Looking ahead to fiscal 2024, analysts predict REGN will report an EPS of $37.72, slightly up from $37.66 in fiscal 2023. Projections for fiscal 2025 suggest further growth, with anticipated EPS rising 2.3% year-over-year to $38.57.
Stock Performance and Recent Declines
REGN shares have fallen 25.1% over the past year, starkly contrasting with the broader S&P 500 Index’s ($SPX) 25.1% rise and the Health Care Select Sector SPDR Fund’s (XLV) small gains during the same timeframe.
Earnings Report and Market Reaction
Despite an impressive Q3, where adjusted EPS reached $12.46 and revenue hit $3.7 billion, REGN’s shares plummeted 9.2% on Oct. 31. The drop followed concerns regarding disappointing sales of its flagship product, Eylea, which fell 21% year-over-year, primarily due to rising competition and pricing pressures. Even though Libtayo’s sales increased by 24% to $289 million, they still fell short of expectations. Regulatory challenges, including the FDA’s complete response letter for linvoseltamab, added to the doubts of investors.
Analysts’ Outlook
Currently, analysts have a positive view on Regeneron Pharmaceuticals, giving the stock a “Strong Buy” rating overall. Among 26 analysts, there are 19 “Strong Buys,” one “Moderate Buy,” five “Holds,” and one “Moderate Sell.” As of now, REGN is trading below the average analyst price target of $1,061.84.
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 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.
