Biogen Inc (NASDAQ: BIIB)
Biogen is a massive biotech company that’s been dealt a heavy hand in the market recently. After missing earnings expectations last week, the stock started to free fall; leading to a big question. Will Biogen continue on the free fall pattern, or will it bounce back. Here’s a glimpse at earnings, what we’ve seen in the market, and my take on what we can expect…
Biogen Earnings Were A Big Miss
- Earnings Per Share – While analysts were expecting to see EPS come in at $3.91, the company only generated an EPS of $3.82 in the first quarter.
- Top-Line Revenue – The company also missed top line revenue in a big way. Analysts were expecting to see revenue come in at $2.656 billion. The company only produced $2.555 billion; missing expectations by more than $100 million.
- Tecfidera Revenue – Quarter over quarter sales of Tecfidera have fallen.
What We’ve Seen From BIIB Since The Report
Since Biogen reported Q1 earnings on the 24th, the stock has been in a bit of a freefall; falling from over $431 per share to just over $380 per share. We’ve seen more declines today. Currently (1:41), the stock is trading at $382.32 per share after a loss of 1.79% so far today.
What I Think We’ll See Moving Forward
Believe it or not, I’m seeing the declines in the stock as a bit of a buying opportunity; especially at this point. The reality is that yes, Biogen did miss earnings and EPS estimates. However, we’re talking about a massive company with quite a bit to offer the healthcare industry. The bottom line is that all great companies will occasionally hit a road block. This is BIIB’s road block. Nonetheless, I still have faith in the company and am expecting to see long term growth. With that said, the declines we’ve seen recently are bringing the price down to great buying opportunity status!
What Do You Think?
Where do you think BIIB is headed and why? Let us know in the comments below!