What Analysts Expect from Incyte’s Q3 Earnings on October 30

A look at Incyte’s Q3 estimates

Incyte (INCY) is set to release its third-quarter earnings on October 30. Wall Street analysts estimate EPS at $0.40 on revenues of $449.2 million for the third quarter. The below chart compares the EPS and revenues since the first quarter of 2017 and estimates for the third quarter of 2018.

What Analysts Expect from Incyte’s Q3 Earnings on October 30

Revenue estimates for Q3

Incyte is expected to report a 17.7% increase in year-over-year revenues to $449.2 million during the third quarter of 2018 as compared to $381.5 million during the third quarter of 2017. The revenues include product revenues from sales of Jakafi and Iclusig, royalty revenues for Jakavi and Olumiant, and milestone and contract revenues.

The strong uptake of Jakafi and Iclusig in the US markets is expected to drive growth in revenues during the third quarter. Apart from revenues from Jakafi and Iclusig, royalty revenues from Novartis AG (NVS) and Eli Lilly (LLY) are expected to contribute to the growth in revenues during the quarter.

Profitability estimates

Analysts estimate the gross profit margin to increase to 95.3% during the third quarter of 2018 as compared to the gross profit margin of 94.2% during the third quarter of 2017. The EBITDA margin is expected to increase to 24.3% during the third quarter of 2018 as compared to 5.7% during the third quarter of 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. The net adjusted income is expected to increase to $89.3 million during the third quarter of 2018 as compared to the net adjusted income of $16.9 million during the third quarter of 2017.

The iShares NASDAQ Biotechnology ETF (IBB) holds 1.9% of its total investments in Incyte (INCY), 7.9% in Biogen (BIIB), and 7.3% in Celgene (CELG).