Healthcare royalties company Royalty Pharma (NASDAQ: RPRX) will be reporting earnings this Wednesday before market hours. Here’s what investors should know.
Royalty Pharma missed analysts’ revenue expectations last quarter, reporting revenues of $622 million, up 4.8% year on year. It was a slower quarter for the company, with a significant miss of analysts’ revenue estimates.
Is Royalty Pharma a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Royalty Pharma’s revenue to grow 53.8% year on year, improving from its flat revenue in the same quarter last year.
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.
Looking at Royalty Pharma’s peers in the branded pharmaceuticals segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Eli Lilly delivered year-on-year revenue growth of 55.5%, beating analysts’ expectations by 13.7%, and Merck reported revenues up 4.9%, topping estimates by 3%. Eli Lilly traded up 13.2% following the results while Merck was also up 1.1%.
Read our full analysis of Eli Lilly’s results here and Merck’s results here.
There has been positive sentiment among investors in the branded pharmaceuticals segment, with share prices up 5.7% on average over the last month. Royalty Pharma is up 7.2% during the same time and is heading into earnings with an average analyst price target of $52.44 (compared to the current share price of $50.74).
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