Pharmaceutical company Organon (NYSE: OGN) will be reporting earnings this Tuesday before market hours. Here’s what you need to know.
Organon beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $1.51 billion, down 6.7% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EPS estimates.
Is Organon a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Organon’s revenue to decline 3.5% year on year to $1.55 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.94 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Organon has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Organon’s peers in the branded pharmaceuticals segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Bristol-Myers Squibb posted flat year-on-year revenue, beating analysts’ expectations by 7.8%, and Merck reported a revenue decline of 1.9%, falling short of estimates by 1.1%. Bristol-Myers Squibb traded down 3.9% following the results while Merck was also down 2.7%.
Read our full analysis of Bristol-Myers Squibb’s results here and Merck’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the branded pharmaceuticals stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.3% on average over the last month. Organon’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $13.33 (compared to the current share price of $9.75).
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