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Can Biogen Deliver a Quarterly Earnings Beat Again?

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Investors are looking forward to Biogen’s third-quarter earnings release. When does the company release its earnings? What do analysts expect? How is Biogen stock performing?

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Biogen's Q3 earnings date and time

Biogen, a multinational biotech company, is scheduled to release its third-quarter earnings on Oct. 21. The earnings will be announced before the markets open. The company's second-quarter earnings beat market expectations. In the second quarter, Biogen delivered its fifth consecutive quarterly earnings beat. When the company released its second-quarter results, it also increased the EPS guidance for the year. 

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For the third quarter, it will be interesting to see how Biogen’s multiple sclerosis sales trended after declining in the second quarter. Also, investors will be watching how the COVID-19 pandemic impacted Biogen’s Tecfidera sales in the third quarter. During the earnings call, management will likely comment on the potential generic competition for its Tecfidera drug. 

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Another important update for Biogen during the third quarter is the FDA accepting the expedited application for its Alzheimer's drug. According to CNBC, Biogen’s new Alzheimer's drug, aducanumab, could be a "potential blockbuster" new treatment for the disease. The FDA is expected to make a decision on Biogen’s application by March 2021. If the treatment gets approved by the FDA, it could be a game-changer for Biogen stock.

How is Biogen stock premarket?

Biogen’s stock price has seen a year-to-date decline of 4 percent. Its 52-week range is $221.56–$374.99. At the current market price of $280, the stock is trading 27 percent higher than the 52-week low and 25 percent lower than the 52-week high. On Oct. 19, the stock closed 0.22 percent lower at $280. In pre-market trading on Monday, Oct. 19 at 8:17 a.m. ET, the stock was trading marginally higher with 0.09 percent gains and trading at $280.25.

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Biogen's dividend

Biogen doesn't pay dividends. While many pharma stocks like Gilead and Novartis pay dividends, a company doesn’t need to pay dividends to make money for shareholders. In April 2011, Amgen announced that it would initiate a dividend and its stock fell by 5 percent. Usually, pharma companies have very high research and development costs. Their clinical pipeline takes a long time to deliver results. Therefore, paying a regular dividend might not be how they choose to reward shareholders.

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What's Biogen's stock forecast?

Currently, 27 analysts cover Biogen. Among the analysts, 17 recommend a buy, while 10 recommend a hold. The consensus target price of $305 implies a potential upside of 9 percent compared to its current market price. 

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Analysts expect Biogen to deliver an EPS of $8.13 for the third quarter and $34.78 for 2020. The company's revenues are expected to be $3.35 billion in the third quarter, which implies a decline of 6.9 percent year-over-year. Biogen's yearly sales for 2020 at $13.83 billion implies a YoY decline of 3.8 percent. 

Biogen's investor relations

You can follow Biogen’s earnings release on its investor relations website. The company will also host a live webcast of the earnings at 8:00 a.m. ET, which will be streamed on the investor relations site. An archived version of the call will also be available on the website.

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