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Tickers in this Article: BIIB
Biogen Idec (Nasdaq:BIIB) announced its results for the most recent quarter on October 25, 2012. Biogen Idec is a global biotechnology company that meets the rising needs of therapeutic care providers and recipients.

A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Can Earnings Guidance Accurately Predict The Future?

The Numbers: Biogen Idec's latest numbers were good, as the company announced EPS and revenues that came in ahead predictions. The company reported $1.67 per share versus the $1.56 per share estimate and revenues of $1.39 billion versus the $1.33 billion estimate. EPS rose 16.8% while revenue climbed 5.8% from the same period last year. Biogen Idec's revenue has grown during each of the past four quarters on a year-over-year basis. Biogen Idec reported net income of $398.4 million during the third quarter. According to the reported number, this is up 13.2% from last year's figures. Last quarter marked the third in a row of rising net income.

Management Quote: "Through the first three quarters of 2012, Biogen Idec is on track to accomplish what we set out to do at the beginning of the year," said George A. Scangos, Ph.D., chief executive officer. "We have enhanced our leadership position in the multiple sclerosis market with strong results from AVONEX and TYSABRI; we have advanced our late-stage pipeline, with positive results from the registrational study for factor IX in hemophilia B; and we continue preparations for the potential launch of BG-12 next year. We look forward to data readouts for factor VIII in hemophilia A soon, followed by dexpramipexole in ALS and PEGylated interferon in relapsing MS in the coming months. Our hard work is reflected in this quarter's results."

A Look Back: Last quarter was the fifth in a row that the company saw shrinking gross margins, as they fell 0.6 percentage point from the year-earlier quarter to 89.9%. In that span, margins have contracted an average of 1.5 percentage points per quarter on a year-over-year basis.

Net income has increased 22.8% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed 38.5% from the year-earlier quarter.

Looking Ahead: Analysts have a more positive outlook about the company's results for next quarter. The average estimate for fourth quarter is $1.59 per share, an increase from $1.56 60 days ago. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. The average estimate for the fiscal year is $6.15 per share, a rise from $6.12 90 days ago.

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