Healthcare royalties company Royalty Pharma (NASDAQ:RPRX) will be reporting earnings tomorrow morning. Here’s what to look for.
Royalty Pharma missed analysts’ revenue expectations by 7% last quarter, reporting revenues of $564.7 million, up 5.3% year on year. It was a mixed 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 grow 1.6% year on year to $605.4 million, slowing from the 5.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.05 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 Q4 results, giving us a hint as to what we can expect. Pfizer delivered year-on-year revenue growth of 21.9%, beating analysts’ expectations by 3%, and Bristol-Myers Squibb reported revenues up 7.5%, topping estimates by 6.6%. Pfizer’s stock price was unchanged after the results, while Bristol-Myers Squibb was down 4.7%.
Read our full analysis of Pfizer’s results here and Bristol-Myers Squibb’s results here.
Investors in the branded pharmaceuticals segment have had steady hands going into earnings, with share prices flat over the last month. Royalty Pharma is up 6.6% during the same time and is heading into earnings with an average analyst price target of $40.70 (compared to the current share price of $31.97).
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