Biogen Idec Earnings: Double-Digit Profit Growth

S&P 500 (NYSE:SPY) component Biogen Idec Inc. (NASDAQ:BIIB) reported its results for the third quarter. Biogen Idec is a global biotechnology company that meets the rising needs of therapeutic care providers and recipients.

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Biogen Idec Inc. Earnings Cheat Sheet

Results: Net income for the medical-bioengineering rose to $398.4 million ($1.67 per share) vs. $351.8 million ($1.43 per share) in the same quarter a year earlier. This marks a rise of 13.2% from the year-earlier quarter.

Revenue: Rose 5.8% to $1.39 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Biogen Idec Inc. beat the mean analyst estimate of $1.61 per share. It beat the average revenue estimate of $1.33 billion.

Quoting Management: “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.”

Key Stats:

Last quarter marked the fifth straight quarter that the company saw shrinking gross margins, as gross margin fell 0.6 percentage point to 89.9% from the year-earlier quarter. In that span, margins have contracted an average of 1.5 percentage points per quarter on a year-over-year basis.

The company has now seen its net income rise for three quarters in a row. In the second quarter, net income rose 34.3% and in the first quarter, the figure rose 2.8%.

Revenue has increased for four quarters in a row. Revenue increased 17.6% to $1.42 billion in the second quarter. The figure rose 7.4% in the first quarter from the year earlier and climbed 8.8% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of $1.82 versus a mean estimate of net income of $1.56 per share.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from $1.63 a share to $1.64 over the last thirty days. The average estimate for the fiscal year is $6.46 per share, a rise from $6.44 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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