Biogen Idec Inc. Earnings: Third Consecutive Quarter of Profit Growth

S&P 500 (NYSE:SPY) component Biogen Idec Inc. (NASDAQ:BIIB) reported its results for the first quarter. Biogen Idec is a global biotechnology company that meets the rising needs of therapeutic care providers and recipients.

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Biogen Idec Earnings Cheat Sheet for the First Quarter

Results: Net income for the medical-bioengineering rose to $302.7 million ($1.25 per share) vs. $294.3 million ($1.20 per share) in the same quarter a year earlier. This marks a rise of 2.8% from the year-earlier quarter.

Revenue: Rose 7.4% to $1.29 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Biogen Idec Inc. fell short of the mean analyst estimate of $1.44 per share. Analysts were expecting revenue of $1.31 billion.

Quoting Management: “Our revenue growth in the first quarter reflects our strong business fundamentals,” said George A. Scangos, Ph.D., the company’s chief executive officer. “While AVONEX orders in January were impacted by what we believe to be isolated events, sales rebounded quickly and we believe the underlying AVONEX business is solid.

Key Stats:

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 25% and in the third quarter of the last fiscal year, the figure rose 38.5%.

Gross margin shrank 1.7 percentage points to 89.7%. The contraction appeared to be driven by increased costs, which rose 29.2% from the year earlier quarter while revenue rose 7.4%.

The company fell short of forecasts after beating estimates in the previous two quarters. In the fourth quarter of the last fiscal year, it topped the mark by 4 cents, and in the third quarter of the last fiscal year, it was ahead by 6 cents.

Revenue has now gone up for three straight quarters. In the fourth quarter of the last fiscal year, revenue rose 8.8% to $1.33 billion while the figure rose 11.4% in the third quarter of the last fiscal year from the year earlier.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the second quarter has moved up from $1.53 a share to $1.54 over the last sixty days. The average estimate for the fiscal year is $6.12 per share, down from $6.27 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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