Biogen Idec Earnings: Here’s Why Investors are Bidding Up Shares

Biogen Idec Inc. (NASDAQ:BIIB) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.1%.

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Biogen Idec Inc. Earnings Cheat Sheet

Results: Net income decreased -2.71% to $292.1 million ($1.4 per diluted share) in the quarter versus a net gain of $300.24 million in the year-earlier quarter.

Revenue: Rose 7.03% to $1.42 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Biogen Idec Inc. reported adjusted net income of $1.4 per share. By that measure, the company missed the mean analyst estimate of $1.46. It beat the average revenue estimate of $1.39 billion.

Quoting Management: George A. Scangos, Ph.D., chief executive officer said, “We are poised to begin what we expect will be a remarkable period of growth, driven by our promising compounds including TECFIDERA and Peginterferon beta-1a for MS, and both Factor VIII and Factor IX for hemophilia. We appreciate the excitement that MS and hemophilia patients have expressed to us about these candidates, and our teams are well prepared to support the launches. We expect MS and hemophilia patients will benefit from these important new products for years to come.”

Key Stats:

Revenue decreased 0.07% from $1.42 billion in the previous quarter. Net income decreased 24.49% from $386.85 million in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.54 to a profit $1.55. For the current year, the average estimate is a profit of $6.58, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials.)