What's in Store for These 5 Drug & Biotech Stocks in Q3 Earnings?

The earnings season for the drug/biotech sector is now in its final lap, with some large biotech and generic drug companies due to report their third-quarter 2024 results this week.The remaining large drugmakers have already reported their results. Many of these companies beat estimates for both earnings and sales. While some like Pfizer and AbbVie raised their guidance ranges, others like Eli Lilly & Merck cut their outlook.Per the Zacks classification, the pharma/biotech industry comes under the broader Medical sector, which comprises pharma/biotech as well as medical device companies.Per the Earnings Trends report, as of Oct. 30, 50% of the companies in the Medical sector — representing 69.1% of the sector’s market capitalization — reported quarterly earnings. Of these, 72.4% beat on earnings and 79.3% beat on revenues. Earnings rose 23.2% year over year, while revenues grew 9.7%.Overall, third-quarter earnings of the Medical sector are expected to increase 7% year over year, while revenues are likely to grow 9.9%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Here, we discuss five large biotech and generic drug companies — Novo Nordisk NVO, Gilead GILD, Moderna MRNA, Viatris VTRS and Teva Pharmaceutical Industries Limited TEVA — which are set to report third-quarter 2024 results this week.Novo NordiskNVO’s performance has been mixed over the trailing four quarters, with earnings beating estimates in three quarters and missing the mark once. On average, Novo Nordisk registered an earnings surprise of 3.18% in the last four quarters. In the last reported quarter, the company delivered a negative earnings surprise of 8.45%.Novo Nordisk A/S Price and EPS Surprise Novo Nordisk A/S price-eps-surprise | Novo Nordisk A/S QuotePer our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) have a good chance of delivering an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Novo Nordisk has an Earnings ESP of +1.02% and a Zacks Rank #3, indicating a likely positive surprise. The Zacks Consensus Estimate for earnings is pegged at 90 cents per share, while the same for revenues is $10.68 billion. Novo Nordisk will report on Nov. 6Novo Nordisk’s revenue growth in the third quarter is expected to have been driven primarily by the strong demand for NVO’s semaglutide, a GLP-1 agonist, which is approved as an Ozempic pre-filled pen and Rybelsus oral tablet for type II diabetes and as a Wegovy injection for weight management.GileadGILD’s earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 13.47%. In the last reported quarter, the company delivered an earnings surprise of 24.84%.Gilead Sciences, Inc. Price and EPS Surprise Gilead Sciences, Inc. price-eps-surprise | Gilead Sciences, Inc. QuoteGilead has an Earnings ESP of -3.16% and a Zacks Rank #3. The Zacks Consensus Estimate for sales and earnings is pegged at $6.99 billion and $1.58 per share, respectively. Gilead will also report on Nov. 6.Sales of Gilead’s HIV drugs Biktarvy and Descovy are likely to have increased in the third quarter. HCV sales growth is likely to have been boosted by higher demand for chronic hepatitis delta virus products and chronic hepatitis B virus products. Cell Therapy product sales are likely to have increased in the to-be-reported quarter.ModernaModerna’s earnings beat estimates in the trailing four quarters, delivering an average surprise of 54.97%. In the last reported quarter, MRNA beat on earnings by 4.03%.Moderna, Inc. Price and EPS Surprise Moderna, Inc. price-eps-surprise | Moderna, Inc. QuoteModerna has an Earnings ESP of -2.67% and a Zacks Rank #3. The Zacks Consensus Estimate for the top and the bottom lines is pegged at $1.25 billion and a loss of $1.91 per share, respectively. Moderna will report on Nov. 7.Investors’ focus will likely be on the sales performance of the company's recently approved RSV vaccine mResvia, which is also the company's first product approval outside of the COVID-19 vaccine space.ViatrisThis large generic drugmaker’s earnings beat estimates in two of the trailing four quarters and missed in the other two, delivering an average negative surprise of 0.89%. In the last reported quarter, VTRS beat earnings estimates by 1.47%.Viatris Inc. Price and EPS Surprise Viatris Inc. price-eps-surprise | Viatris Inc. QuoteViatris has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for revenues is $3.68 billion, while the same for earnings is 68 cents per share. Viatris will report on Nov. 7.Strong growth in Emerging Markets and Japan, Australia and New Zealand (JANZ) and expansion of business activities in Greater China is likely to have boosted sales of Viatris’ Brand business. Sales from the generics business are likely to have improved on the back of strong new product launch performance in Developed Markets, continued growth from complex products and solid performance across the broader European portfolio.TevaTeva’s surprise history has been mixed, with the company beating earnings expectations in three of the last four quarters while missing in one, delivering an average beat of 8.62%. In the last reported quarter, Teva delivered an earnings beat of 7.02%.Teva Pharmaceutical Industries Ltd. Price and EPS Surprise Teva Pharmaceutical Industries Ltd. price-eps-surprise | Teva Pharmaceutical Industries Ltd. QuoteTeva has an Earnings ESP of +4.35% and a Zacks Rank #2, indicating a likely positive surprise. The Zacks Consensus Estimate for earnings is pegged at 65 cents per share, while the same for revenues is $4.08 billion. Teva will report on Nov. 6.Teva’s revenue growth in the third quarter is likely to have been driven by higher revenues from generic products globally and the branded Huntington's disease drug, Austedo.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Novo Nordisk A/S (NVO): Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Moderna, Inc. (MRNA): Free Stock Analysis Report Viatris Inc. (VTRS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks