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What Do Analysts Expect from Ionis’s Q2 2018 Earnings?

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A look at Ionis’s Q2 2018 estimates

Ionis Pharmaceuticals (IONS) is one of the leading RNA-targeted therapeutics companies. The company aims to develop best-in-class drugs for life-threatening diseases. Ionis commercializes approved products in collaboration with other pharmaceutical companies. Ionis is set to release its Q2 2018 earnings on August 7. Wall Street analysts estimate a net loss of $0.09 per share on revenues of $135.5 million in the second quarter of 2018.

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

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Q2 2018 revenue estimates

Ionis is expected to report 30.0% growth in revenues to $135.5 million in the second quarter of 2018 as compared to $104.2 million in Q2 2017. Ionis’s revenue sources include the commercial revenues from Spinraza royalties and other licensing and royalty revenues and research and development revenues under the collaborative agreements.

Commercial revenues are expected to report a YoY increase in Q2 2018, following growth in Spinraza royalties and other licensing and royalty revenues. Also, Wall Street analysts expect growth in research and development revenues under its collaborative agreements, following recent developments in its drug pipeline and new collaborations for drug developments.

Profitability estimates

Ionis is expected to report a decrease in its EBITDA margin during the quarter, following an increase in selling, general, and administrative expenses, and an increase in research and development expenses in Q2 2018. Also, the company is expected to report a net adjusted loss of ~$24.9 million during Q2 2018 as compared to a net loss of ~$11.2 million during Q2 2017.

Notably, the First Trust NYSE Arca Biotechnology ETF (FBT) holds 3.1% of its total investments in Ionis Pharmaceuticals (IONS), 3.2% in Biogen (BIIB), 2.9% in Bluebird Bio (BLUE), and 3.3% in Seattle Genetics (SGEN).

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