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Alexion Pharmaceuticals: What to Expect from Its Q3 Earnings

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Top-line forecast

Alexion Pharmaceuticals (ALXN) is scheduled to report its third-quarter earnings on October 24.

Analysts expect Alexion Pharmaceuticals’ revenues to increase 18.45% from $859.0 million in the third quarter of 2017 to $1.02 billion in the third quarter. In the third quarter of 2017, the company’s revenues increased 7.49%. In the last four quarters, Alexion Pharmaceuticals’ revenue growth ranged between 7.0% and 14.58%.

For 2018 and 2019, Alexion Pharmaceuticals is expected to generate revenues of $4.04 billion and $4.72 billion, respectively. In 2017, Alexion generated revenues of $3.55 billion. The company’s gross margin is expected to fall from 91.73% in the third quarter of 2017 to 91.27% in the third quarter.

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Operational performance

Alexion Pharmaceuticals is expected to incur selling, general, and administrative expenses of $240.11 million in the third quarter compared to $226.0 million in the third quarter of 2017—an increase of 6.24%. The company’s research and development expenses are also expected to increase 14.28% to $199.98 million in the third quarter—compared to the third quarter of 2017.

Bottom line

Alexion Pharmaceuticals is expected to generate a net income of $280.06 million in the third quarter. The company’s net income was $78.0 million in the third quarter of 2017. The net income translates into a net EPS of $1.25 for the third quarter—compared to a net EPS of $0.35 for the third quarter of 2017.

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