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Biogen Inc. (BIIB), headquartered in Cambridge, Massachusetts, specializes in discovering, developing, manufacturing, and delivering therapies for neurological and neurodegenerative diseases. Valued at a market capitalization of $20.6 billion, the company's portfolio includes treatments for conditions such as multiple sclerosis, non-Hodgkin's lymphoma, rheumatoid arthritis, Crohn's disease, and psoriasis. BIIB is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Tuesday, Feb. 11.
Ahead of the event, analysts expect BIIB to report a profit of $3.43 per share on a diluted basis, up 16.3% from $2.95 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect BIIB to report EPS of $16.43, up 11.6% from $14.72 in fiscal 2023.
Over the past year, BIIB stock has dipped 42.6%, significantly underperforming the S&P 500’s ($SPX) 24.6% gains and the Health Care Select Sector SPDR Fund’s (XLV) 1% return over the same time frame.
Biogen has underperformed over the past year due to slow sales of its Alzheimer's drug, Leqembi, setbacks in its drug pipeline, declining multiple sclerosis revenues, high operational costs, and uncertainty surrounding the adoption of its treatments.
Moreover, the stock fell over 1% on Oct. 30, following the release of its Q3 earnings report. The company posted an adjusted EPS of $4.08, down 6.4% year-over-year, and a 2.5% revenue decline to $2.5 billion, reflecting ongoing challenges in the market.
Analysts’ consensus opinion on BIIB stock is reasonably upbeat, with a “Moderate Buy” rating overall. Out of 31 analysts covering the stock, 14 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and 16 give a “Hold.”
Further, BIIB’s average analyst price target is $226.41, indicating a potential upside of 60.3% from the current price levels.
