Biogen Inc (NASDAQ: BIIB)
Biogen is having an incredible day in the market today, and for good reason. The company produced earnings well above what was expected. So naturally, the stock climbed throughout the day. Today, we’ll talk about what we saw from earnings, how the market reacted to the news, and what we cane expect to see from BIIB moving forward.
BIIB Produces Solid Earnings Results
As mentioned above, Biogen released its earnings report for the fiscal fourth quarter as expected. However, what was released was far better than what was expected. Here’s what we saw from the earnings report…
- Earnings Per Share – When it comes to earnings per share, BIIB produced far better than what analysts expected to see. For the fourth quarter, analysts were expecting for Biogen to produce earnings in the amount of $4.08 per share. However, the company actually produced $4.50 per share; proving to be $0.42 ahead of expectations.
- Top-Line Revenue – Top-line revenue also came in well ahead of what analysts expected to see. In the quarter, analysts expected for BIIB to generate $2.71 billion in revenue. However, the company actually produced $2.84 billion; proving an 8% year over year gain!
- Guidance – Guidance also proved to be incredibly positive. For the full year of 2016, Biogen is expecting to produce earnings in the range between $18.30 and $18.60 per share. In terms of revenue, BIIB is expecting to generate between $11.1 and $11.3 billion for the year.
As you can see from the data above, the earnings report was overwhelmingly positive; leading to investor excitement.
How The Market Reacted To The News
As investors, we’ve learned that there are very few things that can cause massive gains in a stock like solid earnings reports. So naturally, BIIB is having an incredible day in the market as a result of the overwhelmingly positive earnings report they released. Currently (2:15), the stock is trading at $281.95 per share after a gain of $22.08 per share or 8.50% so far today.
What We Can Expect To See Moving Forward
When it comes to Biogen, I’m expecting to see an incredibly strong year in the market. There are a few reasons for this. First and foremost, the company’s treatment, TECFIDERA is proving to be incredibly profitable. Revenue on the product grew to $993 million for the fourth quarter, which is incredible year over year growth over the $916 million realized in the same quarter one year earlier. It’s also important to mention that throughout the year, BIIB has intentions of launching three new products including BENEPALI, ZINBRYTATM, and infliximab biosimilar. Between these three products, we’re likely to see massive gains as a result of investor excitement. That’s not even mentioning the gains we’re going to see as a result of the revenue that Biogen is likely to see from these products. All in all, BIIB is an incredible company with great products. Tie it together with an unmatched management team and we have what looks to be a solid investment!
What Do You Think?
Where do you think BIIB is headed moving forward? Let us know your opinion in the comments below!