What to Expect from Incyte’s Q2 2018 Earnings on July 31

A look at Incyte’s Q2 2018 estimates

Incyte (INCY) is set to release its Q2 2018 earnings on July 31. Wall Street analysts expect EPS at $0.34 on revenues of $473.8 million in Q2 2018.

What to Expect from Incyte’s Q2 2018 Earnings on July 31

The above chart compares EPS and revenues since Q1 2017 with estimates for Q2 2018.

Q2 2018 revenue estimates

Incyte is expected to report a 45.1% increase in year-over-year revenues to $473.8 million in Q2 2018, compared to $326.4 million in Q2 2017.

The total revenues include product revenues from sales of Jakafi and Iclusig, royalty revenues for Jakavi and Olumiant, and milestone and contract revenues.

Revenues are expected to increase due to the strong uptake of Jakafi and Iclusig in the US markets and royalty revenues from Novartis (NVS) and Eli Lilly (LLY) during the quarter.

Profitability estimates

Analysts expect the gross profit margin to increase to 95.1% in Q2 2018, compared to a gross profit margin of 93.8% in Q2 2017. The EBITDA margin is expected to increase to 19.2% in Q2 2018, compared to 6.0% in Q2 2017. The EBITDA margin is expected to decrease due to lower selling, general, and administrative expenses and lower research and development expenses as a percentage of revenues in Q2 2018. The net adjusted income is expected to increase to $59.7 million in Q2 2018, compared to a net loss of $12.5 million in Q2 2017.

The Health Care Select Sector SPDR ETF (XLV) invests 0.3% of its total portfolio in Incyte (INCY), 2.7% in Eli Lilly (LLY), 2.1% in Biogen (BIIB), and 2.9% in Gilead Science (GILD).