Yahoo Finance Results: Biogen Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts
A week ago, Biogen Inc. (NASDAQ:BIIB) came out with a strong set of second-quarter numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 3.3% to hit US$2.5b. Biogen reported statutory earnings per share (EPS) US$4.00, which was a notable 13% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Biogen
Following last week's earnings report, Biogen's 31 analysts are forecasting 2024 revenues to be US$9.62b, approximately in line with the last 12 months. Statutory earnings per share are predicted to leap 62% to US$12.87. Before this earnings report, the analysts had been forecasting revenues of US$9.52b and earnings per share (EPS) of US$12.47 in 2024. So the consensus seems to have become somewhat more optimistic on Biogen's earnings potential following these results.
The consensus price target was unchanged at US$273, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Biogen at US$342 per share, while the most bearish prices it at US$190. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Biogen shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would also point out that the forecast 1.0% annualised revenue decline to the end of 2024 is better than the historical trend, which saw revenues shrink 9.8% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 18% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Biogen to suffer worse than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Biogen's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Biogen's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$273, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Biogen. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Biogen going out to 2026, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Biogen , and understanding them should be part of your investment process.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
