Large Cap Biopharma Earnings Boost Stocks: Update 8/1/17

Rayno Large Cap Biopharma Earnings Summary 8/1/17

Biotech Stocks Hit Highs in Mid-July up 18%, 30% on XBI

(Click on “urls” below for Company Press Release)

All the large cap biopharmaceutical earnings have come in except Regeneron (REGN) which will report on August 3.  Stocks were broadly higher in July after financial reports, however we suggested last week that traders avoid new buys like the XBI because biotech stocks had big moves in 2017 and a topping pattern began in late July. Now that earnings are in, track technicals and potential clinical catalysts for August/September which can be weak seasonally.

Top winners for July:

ALXN up 13.235%, GILD up 6.9%, CELG up 4.09%

  • Stocks hold or gained in July through Q2 earnings reports but sold off highs.
  • Technicals weakened last week.
  • Drug pricing remains a concern but nothing new after “repeal and replace ” the ACA failed.

See the 2017 Rayno Life Science Portfolio for our picks: ABBV, AMGN,BLUE, BMY, IBB, BMI, FMI, GILD, RHHBY and XBI (trade).

Abbvie (ABBV)   

Q2 EPS 1.19 incr. of 12.7%, Q2 Revs $6.944B, Confirms Guidance

Alexion (ALXN)

Q2 EPS 0.73 compared to 0.53, Q2 Revs $912M a 21% incr. Rev Guidance higher.

Amgen (AMGN)

Q2 EPS 2.91 incr. 18%, Q2 Revs $5.8B incr. of 2%, Cashflow $2.1B, see new guidance.

Biogen (BIIB)

Q2 EPS $4.07, Q2 Revs. $3.1B incr. 6%, guidance incr. Revs EPS decr.

Bristol-MyersSquibb (BMY)

EPS $0.6 decr. 16%, Q2 Revs. $5.144B incr. 6%, EPS guidance incr.

Celgene (CELG) 

GAAP EPS incr. 26% to $1.82, Revs incr. 19% to $3.268B. Product guidance unchanged,EPS guidance lowered.

Gilead Sciences (GILD) 

GAAP EPS $2.33 vs $2.58, Total Revs $7.1B vs $7.8B, guidance upped for product revs and non -GAAP EPS.

Merck (MRK)

GAAP EPS $0.71 vs $0.43, REVS $9.9B an incr. of 1%, KEYTRUDA revs were $881M, GAAP EPs guidance was reduced.

Regeneron Pharmaceuticals (REGN)

GAAP EPS $3.34 vs $1.89 earnings beat, Total Revs $1.470B vs $1.213B, EYELEA U.S. $919M vs $831; Guidance slight incr. in EYELEA.

Company Ticker Price 2017 Market P/S PEG Q/Q Q/Q Perform 7/1/17 % Perf DIV P
1/7/2016 Rev$B Cap $B REV EPS %12 mos 2017 YTD 8/1
5/8/2017 Gr% Gr%
Abbvie ABBV 57.21 26.22 104.7 4 1.21 9.7 28.1 5.92 66.21 5.73 3.87 70.38
Alexion ALXN 174.37 3.25 28 8.61 3.17 24.1 85.2 -11.71 124.48 1.74 137.79
Amgen AMGN 158 22.93 120.15 5.24 2.83 -1.1 11.8 6.42 163.03 11.5 2.82 174.13
Biogen BIIB 284.01 11.53 55.81 4.84 2.02 3.1 -21.8 -1.21 260.42 -8.17 291.15
Bristol Myers BMY 65.27 19.97 91.31 4.57 2.08 12.3 32.4 -22.89 54.94 -6.02 2.84 56.11
Celgene CELG 111.89 11.68 92.2 7.9 2.15 17.9 17 18.1 118.36 2.25 135.18
Gilead Sci GILD 96.25 29.1 87.9 3.02 -16.5 -18.8 -20.6 67.21 -6.14 3.09 75.70
Merck MRK  51.35 39.93 173.58 4.35 6.95 0.9 63.7  8.79 64 8.9 2.93 63.92
Regeneron REGN 501.96 4.86 42.17 8.68 2.97 9.8 36.2 14.44 423.38 15.3 472
IBB 304 8.18 13.39 289.45 9.07 316
XBI 61.82 2.75 35.52 68.25 15.31 77.09
FBIOX 8.88 13.84 214.2
FBT 21.14 104.97 15.5 115.04

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