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Cambridge, Massachusetts-based Biogen Inc. (BIIB) discovers, develops, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases. With a market cap of $26.6 billion, the company’s products address diseases such as multiple sclerosis, non-hodgkin's lymphoma, rheumatoid arthritis, crohn's disease, and psoriasis. The leading biotechnology company is expected to announce its fiscal third-quarter earnings for 2024 before the market opens on Wednesday, Oct. 30.
Ahead of the event, analysts expect BIIB to report a profit of $3.78 per share on a diluted basis, down 13.3% from $4.36 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect BIIB to report EPS of $16.14, up 9.7% from $14.72 in fiscal 2023. Its EPS is expected to rise 5.5% year over year to $17.03 in fiscal 2025.
BIIB stock has significantly underperformed the S&P 500’s ($SPX) 37.5% gains over the past 52 weeks, with shares down 27.8% during this period. Similarly, it underperformed the Health Care Select Sector SPDR Fund’s (XLV) 18.2% gains over the same time frame.
Biogen experienced challenges in its stock performance as a result of setbacks in its Alzheimer's treatment, Leqembi, and diminishing sales of important multiple sclerosis (MS) medications, Tecfidera and Tysabri. Although some relief was found in revenue generated by new products, the company also encountered difficulties stemming from reduced contract manufacturing and royalty income.
On Aug. 1, BIIB shares closed down more than 1% after reporting its Q2 results. Its revenue stood at $2.5 billion, up marginally year over year. The company’s adjusted EPS increased 31.3% year over year to $5.28. BIIB raised its full-year adjusted EPS to be between $15.75 and $16.25.
Analysts’ consensus opinion on BIIB stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 29 analysts covering the stock, 18 advise a “Strong Buy” rating, two suggest a “Moderate Buy” rating, and nine give a “Hold.” BIIB’s average analyst price target is $265.96, indicating a potential upside of 45.3% from the current levels.
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.
