Pharma ETFs In Focus Post Q4 Earnings

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Healthcare Q4 results seem robust given that it is the fourth-best sector from a revenue growth look and the sixth-strongest in terms of earnings growth. Total earnings of 66.5% for the healthcare market capitalization that has reported so far are up 8.5% on revenue growth of 11.4%. Earnings and revenue beat ratios of 76% and 84%, respectively, also appear robust.

However, 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 (JNJ - Free Report)

The world's biggest healthcare products maker continued its long streak of earnings beat and outpaced revenue estimates. Earnings per share came in at $1.86, beating the Zacks Consensus Estimate of $1.81 and declining 1.1% from the year-ago quarter. Revenues grew 8.3% year over year to $22.5 billion and edged past the Zacks Consensus Estimate of $21.6 billion. For 2021, Johnson & Johnson expects revenues in the range of $90.5-$91.7 billion, indicating year-over-year increase of 9.5-11%, and earnings per share guidance of $9.40-$9.60, up 17.1-19.6% year over year.

Pfizer (PFE - Free Report)

Pfizer missed the consensus mark on earnings but topped on revenues. Earnings per share of 42 cents were well above the Zacks Consensus Estimate of 46 cents. Revenues of $11.68 billion fell shy of the consensus mark of $11 billion. On a year-over-year basis, earnings and revenues increased 14% and 12%, respectively. The U.S. drug giant expects revenues in the range of $59.4-$61.4 billion, indicating year-over-year growth of 44%, for 2021 while raised its the earnings guidance to $3.10-$3.20 from $3.00-$3.10 per share.

Merck (MRK - Free Report)

Merck reported weaker-than-expected results. Earnings per share of $1.32 missed the Zacks Consensus Estimate of $1.36 and improved 14% from the year-ago quarter. Revenues grew 5% year over year to $12.51 billion and were below the consensus mark of $12.59 billion. For 2021, Merck expects revenues in the range of $51.8-$53.8 billion while adjusted earnings are expected in the range of $6.48-$6.68 per share.

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