Organon (OGN) Q4 Earnings Report Preview: What To Look For

StockStory
02-12
Organon (OGN) Q4 Earnings Report Preview: What To Look For

Pharmaceutical company Organon (NYSE:OGN) will be reporting earnings tomorrow before market hours. Here’s what investors should know.

Organon beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $1.58 billion, up 4.1% year on year. It was a slower quarter for the company, with a miss of analysts’ EPS estimates.

Is Organon a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Organon’s revenue to decline 1.2% year on year to $1.58 billion, a reversal from the 7.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.87 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Organon has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Organon’s peers in the branded pharmaceuticals segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Pfizer delivered year-on-year revenue growth of 21.9%, beating analysts’ expectations by 3%, and Bristol-Myers Squibb reported revenues up 7.5%, topping estimates by 6.6%. Pfizer’s stock price was unchanged after the results, while Bristol-Myers Squibb was down 4.7%.

Read our full analysis of Pfizer’s results here and Bristol-Myers Squibb’s results here.

Investors in the branded pharmaceuticals segment have had steady hands going into earnings, with share prices flat over the last month. Organon is down 5.1% during the same time and is heading into earnings with an average analyst price target of $21 (compared to the current share price of $14.95).

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