Earnings Update: Biogen Inc. (NASDAQ:BIIB) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

It's been a good week for Biogen Inc. (NASDAQ:BIIB) shareholders, because the company has just released its latest first-quarter results, and the shares gained 7.5% to US$209. The result was positive overall - although revenues of US$2.3b were in line with what the analysts predicted, Biogen surprised by delivering a statutory profit of US$2.70 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Biogen

Taking into account the latest results, Biogen's 31 analysts currently expect revenues in 2024 to be US$9.53b, approximately in line with the last 12 months. Per-share earnings are expected to leap 64% to US$13.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$9.46b and earnings per share (EPS) of US$13.18 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$286, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Biogen, with the most bullish analyst valuing it at US$350 and the most bearish at US$200 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2024 compared to the historical decline of 9.6% per annum over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 18% annually. So while a broad number of companies are forecast to grow, unfortunately Biogen is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Biogen's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$286, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Biogen analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Biogen you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.