## BioMarin Pharmaceutical (BMRN) Earnings Preview: What to Expect on October 29th
Investors are gearing up for BioMarin Pharmaceutical’s (BMRN) quarterly earnings announcement, scheduled for Tuesday, October 29th. This release holds significant weight for BMRN shareholders, as they await news on the company’s financial performance and future trajectory.
Analysts are forecasting an earnings per share (EPS) of $0.52 for the quarter. However, investors will be looking beyond just meeting estimates, hoping for signs of exceeding expectations and optimistic guidance for the upcoming quarter. Remember, guidance plays a crucial role in shaping investor sentiment and potential stock price movements.
A Look Back at BioMarin’s Recent Performance:
BioMarin has a history of exceeding earnings expectations. In the previous quarter, the company reported an EPS beat of $0.61, which resulted in a 7.95% increase in share price the following day. Here’s a quick snapshot of BioMarin’s earnings history and corresponding price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | 0.35 | 0.96 | 8.0% |
| Q1 2024 | 0.34 | 0.71 | -10.0% |
| Q4 2023 | 0.23 | 0.49 | 1.0% |
| Q3 2023 | 0.22 | 0.46 | -5.0% |
Analyzing BioMarin’s Current Market Position:
As of October 25th, BioMarin’s shares were trading at $69.73. Over the past year, the stock has experienced a decline of 14.11%. This negative performance suggests that long-term shareholders may be feeling bearish going into this earnings release.
Expert Opinions on BioMarin:
It’s essential for investors to understand the broader market sentiment and expectations surrounding BioMarin. A total of 27 analysts have issued ratings on the company, with the consensus rating being ‘Outperform.’ The average one-year price target is $100.85, implying a potential 44.63% upside for the stock.
Comparing BioMarin to its Peers:
To gain further insight into BioMarin’s position within the industry, we’ll compare it to three prominent competitors: Exact Sciences, Incyte, and Sarepta Therapeutics.
| Company | Consensus Rating | Average 1-Year Price Target | Potential Upside |
|—|—|—|—|
| Exact Sciences | Buy | $77.33 | 10.9% |
| Incyte | Neutral | $69.67 | 0.09% Downside |
| Sarepta Therapeutics | Outperform | $176.93 | 153.74% |
Key Observations from Peer Analysis:
*
Revenue Growth:
BioMarin holds the highest revenue growth rate among its peers, coming in at 19.61%. However, this growth is lower than the average for the Health Care sector.*
Gross Profit:
BioMarin boasts the highest gross profit among its peers, demonstrating strong efficiency in its operations.*
Return on Equity (ROE):
BioMarin exhibits the lowest ROE, indicating that the company may not be as effective in utilizing equity capital compared to its peers.BioMarin’s Focus: Rare-Disease Therapies:
BioMarin is renowned for its commitment to developing treatments for rare diseases. Through its joint venture with Genzyme, the company markets Aldurazyme. BioMarin also independently markets Naglazyme, Vimizim, Brineura, Kuvan, and Palynziq to treat rare metabolic disorders like PKU. The company’s notable recent advancements include the approval of Voxzogo (vosoritide) for achondroplasia in 2021 and Roctavian (hemophilia A gene therapy) in Europe in 2022 and the US in 2023.
Financial Snapshot of BioMarin:
*
Market Capitalization:
BioMarin’s market capitalization falls below industry benchmarks, suggesting a smaller scale compared to its peers. This could be attributed to various factors like growth expectations or operational capacity.*
Revenue Growth:
BioMarin’s revenue growth over the past three months has been impressive, reaching approximately 19.61%. This signifies a significant increase in top-line earnings.*
Net Margin:
BioMarin’s net margin surpasses industry standards, showcasing the company’s exceptional financial performance and cost management.*
Return on Equity (ROE):
BioMarin’s ROE surpasses industry averages, demonstrating effective utilization of equity capital.*
Return on Assets (ROA):
BioMarin’s ROA also exceeds industry averages, indicating efficient utilization of assets.*
Debt Management:
BioMarin’s debt-to-equity ratio is below average, signifying a conservative approach to debt management.Key Takeaways:
BioMarin is well-positioned compared to its peers in terms of financial performance. However, investors will be keenly watching for signs of continued growth and profitability in the upcoming earnings release. Keep an eye on the company’s guidance for the next quarter, as it could offer significant clues about the future direction of BioMarin’s stock. For a comprehensive view of BioMarin’s earnings releases, visit our earnings calendar.
