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With a market cap of $17.4 billion, Biogen Inc. (BIIB) is a global biotechnology leader focused on discovering, developing, and delivering innovative therapies for serious neurological and neurodegenerative diseases. Its portfolio includes treatments for multiple sclerosis, spinal muscular atrophy (Spinraza), Alzheimer’s disease (Aduhelm), ALS (QALSODY), and several biosimilars, with active collaborations across the biotech industry. BIIB is set to unveil its fiscal Q1 2025 earnings results before the market opens on Thursday, May 1.
Ahead of this event, analysts expect the Cambridge, Massachusetts-based company to report a profit of $3.34 per share, down nearly 9% from $3.67 per share in the year-ago quarter. However, the company has surpassed Wall Street's bottom-line estimates in the past four quarters. In Q4 2024, BIIB exceeded the consensus EPS estimate by a slight margin.
For fiscal 2025, analysts project Biogen to post EPS of $15.52, reflecting a 5.8% decrease from $16.47 in fiscal 2024. Nevertheless, EPS is anticipated to grow 2.4% year-over-year to $15.89 in fiscal 2026.
BIIB has underperformed the broader markets over the past 52 weeks, with shares down 39.5%, compared to the S&P 500 Index's ($SPX) 4.9% gain and the Health Care Select Sector SPDR Fund's (XLV) 3.2% decline over the same period.
Shares of Biogen fell 4.3% on Feb. 12, after the company issued a disappointing 2025 profit forecast, projecting adjusted EPS of $15.25 to $16.25, below analysts' expectations. It also projected a mid-single-digit percentage decline in total revenue, compared to the analysts’ expected drop. The outlook was further dampened by ongoing pressure on its multiple sclerosis business and a $0.35 per share foreign exchange headwind. Despite Q4 earnings of $3.44 per share and promising sales from new drugs like Leqembi and Skyclarys, the weak forward guidance overshadowed the gains.
Analysts' consensus rating on BIIB stock is moderately optimistic, with a "Moderate Buy" rating overall. Out of 33 analysts covering the stock, opinions include 14 "Strong Buys,” one "Moderate Buy," and 18 "Holds." The average analyst price target for BIIB is $190.48, suggesting a potential upside of 61.1% from current levels.
