Biogen Inc (NASDAQ: BIIB)
Biogen stock is falling today following the company’s release of their earnings report. So today, we’ll take a look at what we saw in the BIIB earnings report, how investors are reacting, and what we can expect to see moving forward from the stock. So, let’s get right to it.
Biogen Misses Q1 Earnings Expectations
Unfortunately, Biogen missed both top line revenue and earnings per share expectations. If you’d like to see a detailed report about BIIB earnings, click here. Nonetheless, here are the main points…
- Earnings Per Share – The company’s earnings per share showed a big miss. While expectations were that EPS would come in at $3.91, the actual figure was $3.82; $0.09 under what was expected.
- Top Line Revenue – In the quarter, Biogen was expected to revenue $2.656 billion. However, the actual revenue for the quarter came in more than $100 million short at $2.555 billion.
- Tecfidera – Year over year, Tecfidera sales did increase; however, when compared to the previous quarter, declines can be seen.
How BIIB Reacted To The News
As we would expect any time bad news comes out about a company, the stock fell. In this particular case, the stock dived by more than 3% in morning trading and has seen slow and steady declines throughout the rest of the day. Currently (12:30), BIIB is trading at $403.99 per share after a loss of $26.29per share or 6.11%.
What We Can Expect Moving Forward
In the short term, there’s no doubt that we are going to continue to see declines; at least throughout the rest of today and likely on Monday. Nonetheless, you can’t discount Biogen too much. The reality is that the company is one of the world’s leaders in biotech. They have a strong hold on multiple sclerosis treatments with options like Avonex, Tecfidera, Tysabri, and Plegridy. Not to mention, the company also has its hands in the neurology, immunology, and hemophilia markets; with pretty impressive data from each. While revenue and EPS expectations were missed, the company has delivered positive earnings surprises in 3 of the last 4 quarters; averaging 11.6% over expectations throughout the past 4 quarters. In my opinion, big companies will run into road blocks here and there; however, leaders like Biogen will have no problem getting past them. So, this downtrend will most likely lead to a great buying opportunity.
What Do You Think?
Where do you think Biogen stock is headed and why? Let us know your opinion in the comments below!