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Gauging Growth Expectations for Roche in 2Q16 and 2016



Revenue growth expectations

According to its earnings calendar, Roche Holding’s (RHHBY) will report its 2Q16 and the first half of 2016 earnings on July 21, 2016.

Wall Street analysts project that Roche will earn revenues of 12.5 billion in Swiss francs, or about $12.7 billion, during the second quarter of 2016. That translates to a YoY (year-over-year) growth of 6.3% during the period.

Analysts further expect Roche’s revenue in 3Q16 to jump to 12.7 billion swiss francs, or about $12.9 billion, which translates to a marginal 2% increase quarter-over-quarter.

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Revenue growth in 2016

According to Wall Street analyst projections, Roche’s fiscal 2016 revenue is expected to be 50.6 billion Swiss francs, or about $51.5 billion, which translates to a 5% yearly growth. According to RHHBY’s guidance for fiscal 2016, there should be a low- to mid-single-digit sales growth on a constant exchange rate basis.

During 2016, Roche’s peers Pfizer (PFE), Johnson & Johnsons (JNJ), and Bristol-Myers Squibb (BMY) are expected to report revenues amounting $52.5 billion, $71.7 billion, and $18.6 billion, respectively. Pfizer is thus expected to grow by 7.5% in fiscal 2016, while JNJ is expected to report 2.4% annual growth during the period. BMY is expected to incur the highest sales growth of 12.2% in fiscal 2016.

But it’s often risky to directly invest in a pharma or biotech company, as any news release related to the success or failure of the drug can result in stock price volatility. To remain on the safer side, investors can opt for the Vanguard Total World Stock Index Fund (VT), which has 0.48% of its total holdings in Roche.

Continue to the next part for a discussion of Roche’s revenue growth drivers.


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