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The first-quarter results of the healthcare sector have been impressive, with earnings of 85% of the sector participants that have reported so far up 46.8% on 8% revenue growth. The earnings beat ratio of 82.4% and the revenue beat ratio of 72.5% are also assuring. Combining the actual results with the estimates for the still-to-report companies, the total earnings of the sector are expected to grow 42.5% on revenue growth of 9.2% (see: all the Healthcare ETFs here).
Many industry bigwigs reported solid results, with some beating on earnings or revenues or both. As such, most pharma ETFs have delivered positive performances over the past month. iShares U.S. Pharmaceuticals ETF IHE, VanEck Vectors Pharmaceutical ETF PPH, Invesco Pharmaceuticals ETF PJP and SPDR S&P Pharmaceuticals ETF XPH have gained 1.1%, 2.5%, 0.5%, and 1.7%, respectively, while First Trust Nasdaq Pharmaceuticals ETF FTXH has shed 1.5% in a month.
Let’s delve deeper into the earnings of some of the bigwigs:
Earnings in Focus
Johnson and Johnson
Johnson & Johnson JNJ continued with its long streak of earnings beat and also outpaced revenue estimates. Earnings per share came in at $2.77, which beat the Zacks Consensus Estimate of $2.57 and improved 2.2% from the year-ago earnings. Revenues grew 2.4% year over year to $21.89 billion and outpaced the Zacks Consensus Estimate of $21.62 billion. The drugmaker raised its revenue guidance for fiscal 2025 to $91.0-$91.8 billion from $89.2-$90.0 billion, indicating year-over-year growth of 2.6%-3.6% versus the prior expectation of 0.5%-1.5%. It maintained its adjusted earnings per share guidance in the range of $10.50-$10.70 (read: ETFs in Focus Post JNJ's Q1 Earnings Beat, Dividend Hike).
Pfizer
Pfizer PFE topped estimates on earnings but lagged on revenues. It reported adjusted earnings per share of 92 cents, which beat the Zacks Consensus Estimate of 64 cents per share and increased 12% year over year. Revenues declined 8% year over year to $13.72 billion and missed the consensus mark of $13.89 billion. The U.S. drug giant reaffirmed its revenue guidance of $61-$64 billion and adjusted earnings per share guidance of $2.80-$3.00 for this year.
Merck
Merck MRK topped earnings and revenue estimates. It posted earnings per share of $2.22, which surpassed the Zacks Consensus Estimate of $2.15 and improved 7% from the year-ago earnings. Revenues dropped 2% year over year to $15.53 billion but edged past the consensus mark of $15.39 billion. Merck maintained its revenue guidance in the range of $64.1-$65.6 billion for 2025 but lowered the earnings per share guidance to $8.82-$8.97 from $8.88-$9.03.
Bristol-Myers
Bristol-Myers BMY also reported better-than-expected results. It posted an earnings per share of $1.80, outpacing the Zacks Consensus Estimate of $1.51. In the year-ago quarter, BMY had posted an adjusted loss per share of $4.40. Revenues dropped 6% year over year to $11.2 billion and edged past the Zacks Consensus Estimate of $10.7 billion. For 2025, Bristol-Myers raised its revenue guidance to $45.8-$46.8 billion from $45.5 billion and earnings per share guidance to 6.70-$7.00 from $6.55-$6.85.
Eli Lilly and Company
Eli Lilly and Company LLY missed earnings estimates but outpaced revenue estimates. Earnings per share came in at $3.34, falling short of the Zacks Consensus Estimate of $3.52 but improving 29% from the year-ago earnings. Revenues rose 45% to $12.73 billion and edged past the estimated $12.62 billion. Eli Lilly maintained its full-year revenue guidance of $58-$61 billion, indicating year-over-year growth of 32%, and lowered its adjusted earnings per share guidance to $20.78-$22.28 from $22.50-$24.00.