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Bad News for Regeneron Pharmaceuticals for 4Q15 Revenue and Earnings

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Revenue for 4Q15

Regeneron Pharmaceuticals (REGN), based out of Tarrytown, New York, reported earnings for 4Q15 and fiscal 2015 on February 9, 2016. According to Wall Street analysts, the company expected revenue for 4Q15 to be $1.2 billion, but Regeneron earned $1.1 billion. Revenues for 2015 stood at $4.1 billion, reflecting a 46% annual growth, and the 42% jump in Eylea’s global net sales during 4Q15 supported this robust total revenue growth.

Historically, Regeneron has always exceeded expectations and earned more than expected revenues. However, in 4Q15, its earnings fell by 6.7%, missing revenue expectations.

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Bad news for earnings per share in 4Q15

In 4Q15, Regeneron’s EPS (earnings per share) stood at $2.83, whereas the analyst expectation was $3.37—a 16.1% miss.

Share price movement

After its 4Q15 and fiscal 2015 earnings announcement, Regeneron’s stock fell by ~6.3% on the day. Over the past year, the share price of Regeneron has fallen by ~10%. By comparison, Amgen (AMGN), Pfizer (PFE), and Roche (RHHBY) saw declines of 5.4%, 12.2%, and 7.5%, respectively, over the same period, and the NASDAQ index has meanwhile fallen by 10%.

To diversify the risk of investing directly in the equity of Regeneron Pharmaceuticals, investors can look for options such as the iShares Nasdaq Biotechnology ETF (IBB), which has about 5.5% of its total holdings in Regeneron Pharmaceuticals.

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