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Delaware-based Incyte Corporation (INCY) focuses on the discovery, development, and commercialization of therapeutics for hematology, oncology, and inflammation & autoimmunity conditions. Valued at nearly $14 billion by market cap, Incyte’s expertise in medicinal chemistry and biology has enabled it to create a diversified portfolio of marketed products and clinical candidates.
The biopharma major is expected to announce its fourth-quarter results on Tuesday, Feb. 11. Ahead of the event, analysts expect Incyte to report a profit of $1.34 per share, up by a staggering 63.4% from $0.82 per share reported in the year-ago quarter. However, the company has missed Wall Street’s bottom-line estimates in each of the past four quarters.
For the full fiscal 2024, analysts expect Incyte to deliver an EPS of $0.40, down 85.1% from $2.69 in fiscal 2023. In fiscal 2025, its earnings are expected to rebound substantially to $5.20 per share.
INCY stock has surged over 18.1% in the past 52 weeks, substantially outperforming the Healthcare Select Sector SPDR Fund’s (XLV) 1% gains while lagging behind the S&P 500 Index’s ($SPX) 24.6% returns during the same time frame.
Despite observing a 15.7% year-over-year drop in adjusted net income to $209.7 million and lagging Wall Street’s earnings expectations, Incyte’s stock prices skyrocketed 12% after the release of its Q3 results on Oct. 29 as the company’s total revenues surged 23.8% year-over-year to over $1.1 billion. Two of Incyte’s highest revenue-contributing products Jakafi and Opzelura observed a robust growth in sales which surpassed analysts’ estimates. While Jakafi, which treats myelofibrosis (MF), observed a 16.5% growth in sales to $741.2 million, Opzelura which treats eczema and vitiligo experienced a staggering 51.7% growth in revenues to $139.3 million.
Observing the momentum, Incyte raised its full-year net revenue guidance for Jakafi to $2.7 billion - $2.8 billion which further boosted investor confidence.
The consensus opinion on INCY stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 24 analysts covering the stock, 11 recommend “Strong Buy,” 12 suggest “Hold,” and one advises a “Strong Sell” rating. Its mean price target of $78.71 represents an 8.6% premium to current price levels.
