A Look at the Healthcare Sector Ahead of Upcoming Earnings

The health care sector finished in the red in 2016, but made a comeback in 2017, finishing the year up 21.7%. Early 2018 shows the sector’s performance in line with the S&P 500, although certainly their numbers are subject to change.

While a few companies have not reported their earnings, some estimates have been made by third-party consensus analysts for those who have made announcements.

  • Johnson & Johnson—adjusted earnings per share (EPS) of $2.01 on revenue of $19.38 billion, compared to $1.83 on revenue of $18 billion in Q1 2017.
  • Eli Lilly—adjusted EPS of $1.13 on revenue of $5.47 billion, compared to $0.98 on revenue of $5.23 billion in Q1 2017.
  • Merck—adjusted EPS of $0.98 on revenue of $9.94 billion, compared to $0.88 on revenue of $9.43 billion in Q1 2017
  • Cigna—adjusted EPS of $3.38 on revenue of $11.02 billion, compared to $2.77 on revenue of $10.34 billion in Q1 2017.

For those yet to confirm earnings release dates, there are the following estimates:

  • Abbvie—adjusted EPS of $1.78 on revenue of $7.56 billion, compared to $1.28 on revenue of $6.54 billion in Q1 2017.
  • Celgene—adjusted EPS of $1.99 on revenue of $3.49 billion, compared to $1.68 on revenue of $3.04 billion in Q1 2017.
  • CVS Health—adjusted EPS of $1.40 on revenue of $45.82 billion, compared to $1.17 on revenue of $44.51 billion in Q1 2017.
  • Gilead—adjusted EPS of $1.61 on revenue of $5.39 billion, compared to $2.23 on revenue of $6.51 billion in Q1 2017.
  • Pfizer—adjusted EPS of $0.73 on revenue of $12.9 billion, compared to $0.69 on revenue of $12.78 billion in Q1 2017.
  • United Health Group—adjusted EPS of $2.92 on revenue of $54.85 billion, compared to $2.37 on revenue of $48.72 billion in Q1 2017.

Early this year, Amazon, Berkshire Hathaway, and JPMorgan Chase’s announced their plan to team up to address U.S. employee healthcare, with a stated goal to create solutions to improve healthcare for their employees and eventually all Americans.

With three big names entering the sector with no need for profits, those currently in the sector could take a hit.

 

Read more at Forbes

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