Beat and Raise: Big Biotechs' Outstanding Quarterhttp://www.fool.com/investing/general/2012/10/31/beat-and-raise-big-biotechs-outstanding-quarter.aspx Brian Orelli
October 31, 2012
For most biotechs, earnings season is nothing more than a chance to update investors on their pipeline and how much cash they still have. Revenue, if they have any, is often payments from partners amortized over the life of the deal, which makes the net loss kind of useless.
But with multiple drugs to sell, earnings season actually matters for the four big biotechs: Amgen (Nasdaq: AMGN ) , Gilead Sciences (Nasdaq: GILD ) , Biogen Idec (Nasdaq: BIIB ) , and Celgene (Nasdaq: CELG ) . For the most part, they got it done in the third quarter. All four companies beat analysts' expectations and raised their guidance for the year.
Growing the bottom line
EPS can also increase faster than revenue if a company has fewer shares outstanding after repurchasing shares over the last year. Amgen especially has been a prolific share repurchaser; there were nearly 14% fewer outstanding shares in the third quarter compared to the same period in 2011.
The glaring exception