BeiGene (BGNE) Q3 2019 Earnings Prep

in EARNINGS/INVESTING IDEAS by

BeiGene, Ltd. (NASDAQGS:BGNE) is scheduled to report Q3 earnings results on August 7, 2018. The company is expected to report earnings of -$3.62/share on revenue of $61.925 million. The consensus earnings per share (EPS) of -$3.62/share is based on a poll of 7 analysts.

The revenue forecast of $61.925 million based on a poll of 8 analysts implies a year-over-year (YoY) growth of 14.2%. Last year the company reported $54.202 million in revenue for the quarter.

Expected to report EPS of -$3.62/share for Q3, 2019
Metric Expected Prior Year YoY Change
Revenue $61.92 $54.20 14.2%
EPS -$3.62 -$2.53 NM

Earnings Call Trends

Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, and missed expectations 4 quarters. What are your expectations from BeiGene for this earnings this quarter? Let us know in the comments!

Analyst Expected vs Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2019 -$3.06 -$1.43 NM Beat
Q1, 2019 -$3.54 -$2.81 NM Beat
Q4, 2018 -$3 -$4.52 NM Missed
Q3, 2018 -$2.97 -$2.53 NM Beat
Q2, 2018 -$2.10 -$2.92 NM Missed
Q1, 2018 -$2 -$2.03 NM Missed
Q4, 2017 -$1.66 -$2.19 NM Missed
Q3, 2017 -$1.49 $2.54 NM Beat

One question we always consider here at the Bankers’ Tribune is how important are earnings reports to BeiGene’s stock price performance? It’s more important for some companies than for others. In the following table, we summarize the company’s stock price movements after earnings releases.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-08-08 $130.83 $132.98 1.6% Increase
2019-05-09 $117.50 $134.22 14.2% Increase
2019-02-27 $140.02 $137.05 -2.1% Decline
2018-11-07 $124.65 $126.43 1.4% Increase

The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2019, the stock price reacted by increasing by 1.6%.

Fundamentals And Technical Analysis

BeiGene is currently trading at $191.72/share, down -3.9% for the day. The company’s stock price is up 46.5% since the last earnings report and up 5.2% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 87.49 suggests the company is trading in technically overbought territory. The RSI is considered overbought when above 70 and oversold when below 30.

The current share price implies a price-to-earnings (P/E) multiple of -18.2x and a forward P/E multiple of -19.2x. BeiGene’s current share price also implies a price-to-book (P/B) multiple of 7.8x. The following table summarizes some other key fundamental ratios:

Data as of November 11, 2019
Metric Value
Last Fiscal Period FY2019.Q2
Period End Date June 30, 2019
Stock Price (Current) $191.72
P/E Ratio -18.2x
P/E Ratio (Fwd) -19.2x
PEG Ratio -0.9
Total Debt to Capital (%) 2.2%
Levered Free Cash Flow -$637.4 million
Enterprise Value / EBITDA -16.0x

Company Profile: BeiGene, Ltd.

BeiGene, Ltd. is a large-cap stock with a market capitalization of $11.623 billion and a total enterprise value of $10.378 billion. The company operates in the Healthcare sector and Biotechnology industry. BeiGene, Ltd., a commercial-stage biotechnology company, develops and commercializes molecularly-targeted and immuno-oncology drugs for the treatment of cancer in the People’s Republic of China, the United States, and internationally. Its commercial products include ABRAXANE, a chemotherapy product for the treatment of breast, non-small cell lung, pancreatic, and gastric cancers; REVLIMID, an oral immunomodulatory drug for the treatment of multiple myeloma in combination with dexamethasone; and VIDAZA, a pyrimidine nucleoside analog for the treatment of intermediate-2 and myelodysplastic syndromes, chronic myelomonocyte leukemia, and acute myeloid leukemia with 20% to 30% blasts and multi-lineage dysplasia.

The company’s clinical stage drug candidates include BGB-3111, a small molecule Bruton’s tyrosine kinase (BTK) inhibitor for the treatment of lymphomas; BGB-A317, a humanized monoclonal antibody for solid and hematological cancers; and BGB-290, a small molecule inhibitor of PARP1 and PARP2 for the treatment of homologous recombination deficient cancers. In addition, its clinical stage drugs include BGB-283, a small molecule RAF dimer inhibitor to treat cancers with aberrations in the mitogen-activated protein kinase pathway; BGB-A333, a humanized monoclonal antibody for the immune checkpoint receptor ligand PD-L1; BGB-A425, a TIM-3 inhibitor; MGCD-0516, a multi-kinase inhibitor; CC-122, a cereblon modulator; and BGB-3245, an oral small molecule inhibitor of specific BRAF mutations, including B-RAF non-V600 mutations and RAF fusions for various solid tumor indications.

The company has collaborations with Celgene Corporation, Merck KGaA, Mirati Therapeutics, Inc., Zymeworks, BioAtla, LLC, and Ambrx, Inc. BeiGene, Ltd. was founded in 2010 and is headquartered in Beijing, the People’s Republic of China.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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