In this article, we will take a look at the 10 healthcare stocks making moves after earnings. If you want to see some more healthcare companies moving on quarterly results, go directly to 5 Healthcare Stocks Making Moves After Earnings.
The Healthcare sector is usually considered defensive. That’s because pharmaceutical companies, hospitals, medical device makers and other associated businesses continue to benefit from stable consumer demand despite broader macroeconomic headwinds.
Recently, notable healthcare stocks, including Eli Lilly and Company (NYSE:LLY), Cigna Corporation (NYSE:CI) and Zoetis Inc. (NYSE:ZTS), released financial results for the second quarter.
Looking at their price actions, shares of Eli Lilly and Company (NYSE:LLY) and Zoetis Inc. (NYSE:ZTS) fell after missing earnings expectations. On the other hand, Cigna Corporation (NYSE:CI) hit a new 52-week high after delivering solid Q2 results.
Many other healthcare stocks, including Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) and Becton, Dickinson and Company (NYSE:BDX), were also seen making moves after their recent earnings. We will discuss the financial performance and share price movement of these companies in the remaining article.
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10. BeiGene, Ltd. (NASDAQ:BGNE)
Number of Hedge Fund Holders: 15
Shares of BeiGene, Ltd. (NASDAQ:BGNE) jumped nearly 13 percent on Thursday, August 4, 2022, after its second-quarter revenue rose sharply over last year. The Chinese biotechnology company generated revenue of $341.6 million in the quarter, which more than doubled from $150 million in the comparable period of 2021. Analysts were looking for revenue of $318 million.
Product sales increased to $304.5 million, from $138.6 million in the year-ago period. BeiGene, Ltd. (NASDAQ:BGNE) attributed the surge to solid global sales of its anticancer medicine BRUKINSA.
On the downside, BeiGene, Ltd. (NASDAQ:BGNE) posted a loss of $5.56 per ADS, wider than a loss of $5.23 per ADS in the comparable period of 2021. Analysts, on average, estimated a loss of $3.97 per ADS.
9. Twist Bioscience Corporation (NASDAQ:TWST)
Number of Hedge Fund Holders: 16
Twist Bioscience Corporation (NASDAQ:TWST) posted a narrower-than-expected loss for its fiscal third quarter and raised its sales outlook for the full year. As a result, its shares jumped more than 12 percent on Friday, August 5, 2022.
The San Francisco-based biotechnology company reported a loss of $1.08 per share, while analysts were looking for a loss of $1.31 per share. In addition, Twist Bioscience Corporation (NASDAQ:TWST) posted revenue of $56.1 million, up 60 percent over the year-ago period and above the consensus of $51.45 million.
Among other updates, Twist Bioscience Corporation (NASDAQ:TWST) reported that it received $59.7 million in orders during the quarter versus $39.1 million in the comparable period of 2021.
Twist Bioscience Corporation (NASDAQ:TWST) now expects to generate revenue of $203 million in its fiscal 2022, up from its previous outlook between $191- $199 million. The updated guidance is better than the consensus of $196.91 million.
8. Organon & Co. (NYSE:OGN)
Number of Hedge Fund Holders: 27
Shares of Organon & Co. (NYSE:OGN) slipped nearly three percent on Friday, August 5, 2022, a day after reporting a drop in its Q2 profit and sales. The New Jersey-based company earned $1.25 per share on an adjusted basis, compared to $1.72 per share in the year-ago period.
Revenue inched down one percent on a year-over-year basis to $1.59 billion. Analysts were expecting Organon & Co. (NYSE:OGN) to post earnings of $1.25 per share on revenue of $1.54 billion.
Organon & Co. (NYSE:OGN) also released its sales outlook for the full year. It projected revenue in the range of $6.1 – $6.3 billion for fiscal 2022, in line with analysts’ average estimate of $6.18 billion.
Meanwhile, BofA downgraded Organon & Co. (NYSE:OGN) on Friday, August 5, following its latest quarterly results. BofA analyst Jason Gerberry lowered his ratings for Organon from “Buy” to “Neutral” with a price target of $37 per share for the stock.
Like Organon & Co. (NYSE:OGN), Eli Lilly and Company (NYSE:LLY), Cigna Corporation (NYSE:CI) and Zoetis Inc. (NYSE:ZTS) were also spotted making notable moves after their recent earnings.
7. Doximity, Inc. (NYSE:DOCS)
Number of Hedge Fund Holders: 28
Doximity, Inc. (NYSE:DOCS) surpassed profit and sales expectations for its fiscal first quarter. However, investors seemed disappointed with its revised sales outlook for the full year, sending its shares down more than 7 percent on Friday, August 5, 2022.
The online healthcare interactive platform reported adjusted earnings of 14 cents per share, topping the estimates of 10 cents per share. Revenue came in at $90.6 million, while analysts expected Doximity, Inc. (NYSE:DOCS) to post revenue of $89.3 million.
Looking forward, Doximity, Inc. (NYSE:DOCS) now expects revenue of $424 – $432 million for its fiscal 2023, down from its previous projection of $454 – $458 million. The revised guidance is below the consensus of $455.23 million.
Separately, investment management firm ClearBridge Investments also mentioned Doximity, Inc. (NYSE:DOCS) in its first-quarter 2022 investor letter published earlier this year. Here’s what the firm said:
“Doximity (NYSE:DOCS), another new purchase, operates the largest professional social network for physicians. We believe Doximity is poised to gain share within its core addressable market for medical professional marketing, hiring and telehealth solutions. We also see significant opportunity for growth beyond this initial target market, driven by the potential for the company to add new member types, broaden its customer base, expand internationally and offer direct-to-consumer applications. Doximity has a profitable financial model, though we see room for further margin expansion ahead, particularly as growth matures.”
6. Insulet Corporation (NASDAQ:PODD)
Number of Hedge Fund Holders: 40
Shares of Insulet Corporation (NASDAQ:PODD) rose to a nearly four-month high on Friday, August 5, 2022, after beating sales expectations for the second quarter. The medical device company’s revenue increased 13.8 percent on a year-over-year basis to $299.4 million, topping the expectations of $291.45 million.
Revenue from its flagship automated insulin delivery device Omnipod climbed 18.1 percent to $285.8 million in the quarter. On the downside, Insulet Corporation (NASDAQ:PODD) posted a loss of 50 cents per share, contrary to analysts’ average estimate for earnings of 22 cents per share.
Looking forward, Insulet Corporation (NASDAQ:PODD) now expects its sales to grow in the range of 14 – 17 percent in fiscal 2022, compared to its earlier expectations for 12 – 16 percent growth.
A number of research firms improved their price target for Insulet Corporation (NASDAQ:PODD) following its Q2 results. Baird lifted its price target from $245 to $300, while Raymond James increased its price target from $262 to $280.
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Disclosure: None. 10 Healthcare Stocks Making Moves After Earnings is originally published on Insider Monkey.
