Pharma ETFs In Focus Post Q1 Earnings

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Healthcare Q1 results seem robust given that total earnings for the quarter as a whole are expected to be up 24.6% on revenue growth of 10%.

Many industry bigwigs reported mixed results with some beating on earnings or revenues or both, while a few missed the estimates on both fronts. Many of them lifted the outlook for the full year. Let’s delve deeper into a few of them:

Earnings in Focus

Johnson and Johnson

The world's biggest healthcare products’ maker continued its long streak of earnings beat and outpaced revenue estimates. Earnings per share came in at $2.59, beating the Zacks Consensus Estimate of $2.31 and improving 12.6% from the year-ago quarter. Revenues grew 7.9% year over year to $22.3 billion and edged past the Zacks Consensus Estimate of $21.82 billion. For 2021, Johnson & Johnson narrowed its revenue range from $90.5-$91.7 billion to $90.6-$91.6 billion, indicating a year-over-year increase of 9.7-10.9%. The earnings per share guidance range has been revised from $9.40-$9.60 to $9.42-$9.57, representing year-over-year growth of 17.3-19.2%.


Pfizer also topped on both fronts. Earnings per share of 93 cents were well above the Zacks Consensus Estimate of 79 cents. Revenues of $14.58 billion edged past the consensus mark of $13.49 billion. On a year-over-year basis, earnings and revenues increased 47% and 45%, respectively. The U.S. drug giant raised its revenue guidance to $70.5-$72.5 billion from $59.4-$61.4 billion, indicating year-over-year growth of 71%, and earnings guidance to $3.55-$3.65 from $3.10-$3.20 per share, indicating year-over-year growth of 59%, for 2021.


Merck reported weaker-than-expected results. Earnings per share of $1.40 missed the Zacks Consensus Estimate of $1.63 and declined 7% from the year-ago quarter. Revenues were flat year over year at $12.08 billion and below the consensus mark of $12.84 billion. For 2021, Merck maintained its revenue guidance in the range of $51.8-$53.8 billion, which indicates year-over year growth of 8-12%, while adjusted earnings are expected in the range of $6.48-$6.68 per share.

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