Biogen Idec Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Biogen Idec (NASDAQ:BIIB) will unveil its latest earnings tomorrow, Monday, January 28, 2013. Biogen Idec is a global biotechnology company that meets the rising needs of therapeutic care providers and recipients.

Biogen Idec Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.46 per share, a decline of 2.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.64. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.46 during the last month. Analysts are projecting profit to rise by 12% versus last year to $6.54.

Past Earnings Performance: The company is looking to make a streak of three quarters of beating estimates. Last quarter, it beat expectations by reporting net income of $1.90 per share, and the previous quarter, it had profit of $1.82.

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A Look Back: In the second quarter, profit rose 34.3% to $386.8 million ($1.61 a share) from $288 million ($1.18 a share) the year earlier, exceeding analyst expectations. Revenue rose 17.6% to $1.42 billion from $1.21 billion.

Here’s how Biogen Idec traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

BIIB

Stock Price Performance: Between December 20, 2012 and January 22, 2013, the stock price dropped $6.35 (-4.2%), from $151.21 to $144.86. The stock price saw one of its best stretches over the last year between September 10, 2012 and September 18, 2012, when shares rose for seven straight days, increasing 2.8% (+$4.20) over that span. It saw one of its worst periods between December 18, 2012 and December 28, 2012 when shares fell for eight straight days, dropping 4.8% (-$7.37) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 3.8% in revenue from the year-earlier quarter to $1.38 billion.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 25% in the fourth quarter of the last fiscal year and 2.8% in the first quarter before increasing again in the second quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 11.4% in the third quarter of the last fiscal year, 8.8% in the fourth quarter of the last fiscal year and 7.4% in the first quarter before increasing again in the second quarter.

Analyst Ratings: With 11 analysts rating the stock as a buy, none rating it as a sell and 11 rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.0 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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