Healthcare royalties company Royalty Pharma (NASDAQ: RPRX) will be reporting results tomorrow before the bell. Here’s what you need to know.
Royalty Pharma missed analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $594 million, flat year on year. It was a slower quarter for the company, with a decent beat of analysts’ EPS estimates.
Is Royalty Pharma a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Royalty Pharma’s revenue to be flat year on year at $570 million, improving from the 17% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.95 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Royalty Pharma has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Royalty Pharma’s peers in the branded pharmaceuticals segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Bristol-Myers Squibb’s revenues decreased 5.6% year on year, beating analysts’ expectations by 3.9%, and Supernus Pharmaceuticals reported revenues up 4.3%, topping estimates by 1.3%. Bristol-Myers Squibb traded down 1.3% following the results.
Read our full analysis of Bristol-Myers Squibb’s results here and Supernus Pharmaceuticals’s results here.
There has been positive sentiment among investors in the branded pharmaceuticals segment, with share prices up 5.9% on average over the last month. Royalty Pharma is up 3.8% during the same time and is heading into earnings with an average analyst price target of $39.74 (compared to the current share price of $32.02).
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