Biogen tops analysts’ estimates for earnings and revenue in Q2

Written by

Written on Jul 22, 2020

Reading time 3 minutes

Biogen tops analysts’ estimates for earnings and revenue in Q2.
The U.S. biotech company raises its outlook for the full year.
Biogen announces Michael McDonnell as the new CFO.

Biogen Inc. (NASDAQ: BIIB) published its quarterly earnings report on Wednesday that topped analysts’ estimates for earnings and revenue in the fiscal second quarter. Owing to its hawkish Q2 performance, the company also raised its financial guidance for the full year. Its peer, Thermo Fisher Scientific, also reported a 10% increase in sales in the fiscal second quarter on Wednesday.

Shares of the company remained almost flat in premarket trading on Wednesday. At £220.80 per share, Biogen is currently 5% down year to date in the stock market. The Cambridge-headquartered company recently posted a low of £203.83 per share in late June. Learn more about why prices rise and fall in the stock market.

Biogen’s Q2 financial results versus analysts’ estimates

According to FactSet, experts had forecast the company to print £2.70 billion in revenue in the second quarter. In terms of earnings per share (EPS), they had estimated £6.32. In its report on Wednesday, Biogen topped both estimates posting a higher £2.90 billion in revenue and £8.08 of adjusted earnings per share in Q2.

At £1.21 billion, Biogen said that its net income in the second quarter came in higher than £1.17 billion in the same quarter last year. On a year over year basis, its sales were also reported 2% higher in the recent quarter.

For the full year, Biogen now expects its adjusted EPS to lie in the range of £26.79 to £28.37. On the revenue front, it now forecasts £10.87 billion to £11.19 billion. In its previous guidance, the company had estimated a lower EPS of £24.82 to £26.40 but higher revenue of £11.03 billion to £11.27 billion. Analysts are expecting the company to print £26.06 of EPS on £10.98 billion in revenue in fiscal 2020.

Other prominent figures in Biogen’s earnings report

Other prominent figures in Biogen’s earnings report on Wednesday include a 3% increase in revenue from Tecfidera, a 1% increase from Spinraza, and a 9% decline in revenue from Tysabri.

Biogen also announced late on Tuesday that CFO Jeffrey Capello will exit the role in August and will be replaced by Michael McDonnell. McDonnell is currently serving as the CFO at Iqvia Holdings Inc.

The American multinational biotechnology company was fairly flat in the stock market last year. At the time of writing, it has a market cap of £36.03 billion and a price to earnings ratio of 8.65.