Biogen Idec Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Biogen Idec (NASDAQ:BIIB) will unveil its latest earnings on Thursday, October 25, 2012. 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 $1.61 per share, a rise of 2.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.59. Between one and three months ago, the average estimate moved up. It has risen from $1.60 during the last month. Analysts are projecting profit to rise by 10.6% versus last year to $6.46.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the second quarter, it reported net income of $1.82 per share against a mean estimate of profit of $1.56 per share. In the first quarter, it missed forecasts by 5 cents.

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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.

Stock Price Performance: Between September 21, 2012 and October 19, 2012, the stock price dropped $8.92 (-5.8%), from $154.57 to $145.65. 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 October 3, 2012 and October 11, 2012 when shares fell for seven straight days, dropping 3.8% (-$5.84) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 5.3% in revenue from the year-earlier quarter to $1.38 billion.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. 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 12 analysts rating the stock a buy, none rating it a sell and eight rating the stock a hold, there are indications of a bullish stance by analysts.

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)

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