Yahoo Finance Biogen Inc. (NASDAQ:BIIB) Just Released Its First-Quarter Earnings: Here's What Analysts Think
It's been a good week for Biogen Inc. (NASDAQ:BIIB) shareholders, because the company has just released its latest first-quarter results, and the shares gained 7.5% to US$209. Biogen reported US$2.3b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$2.70 beat expectations, being 2.3% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Biogen
Following last week's earnings report, Biogen's 31 analysts are forecasting 2024 revenues to be US$9.52b, approximately in line with the last 12 months. Per-share earnings are expected to jump 64% to US$13.13. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$9.46b and earnings per share (EPS) of US$13.18 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$286, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Biogen at US$350 per share, while the most bearish prices it at US$200. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2024 compared to the historical decline of 9.6% per annum 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 while a broad number of companies are forecast to grow, unfortunately Biogen is expected to see its revenue affected worse than other companies in the industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Biogen going out to 2026, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for Biogen that you need to take into consideration.
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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.
