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

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A look at Shire’s Q2 2018 estimates

Shire (SHPG) is set to release its Q2 2018 earnings on July 31. Wall Street analysts expect EPS of $3.67 on revenues of $3.8 billion.

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

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Q2 2018 revenue estimates

Shire is expected to report a 1.5% increase in year-over-year revenues to $3,802 million in Q2 2018, compared to $3,746 million in Q2 2017.

The revenue growth is expected to be driven by strong performance of immunology products, strong uptake of recently launched products, and expansion in international markets. The revenues for immunology products should be driven by strong sales of immunoglobulin and Bio-Therapeutic products during the quarter.

The company’s recently launched products since 2013 include Hyqiva, Xiidra, Mydayis, Cuvitru, Rixubis, and Obizur.

Profitability estimates

Analysts expect Shire’s gross profit margin to increase to 74.3% in Q2 2018, compared to a gross profit margin of 70.4% in Q2 2017. The EBITDA margin is expected to decrease to 42.3%, compared to 59.7% in Q2 2017, due to increased operating expenses during the quarter. The company’s net adjusted income is expected to increase to ~$1.1 billion in Q2 2018, compared to a net income of ~$1.0 billion in Q2 2017.

The iShares NASDAQ Biotechnology ETF (IBB) invests 1.4% of its total portfolio in Shire (SHPG), 2.2% in BioMarin (BMRN), 8.6% in Biogen (BIIB), and 8.5% in Gilead Sciences (GILD).

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