How reliable are forecasts for REGN's earnings?
3/28/2025 06:10pm
**Forecasts for Regeneron Pharmaceuticals Inc.'s (REGN) earnings are generally reliable**, considering the company's historical performance and the analysts' projections. Here's an analysis to support this conclusion:
1. **Consistent Track Record**: Regeneron has a history of beating earnings per share (EPS) estimates 88% of the time and revenue estimates 88% of the time over the last two years. This indicates a strong likelihood of the company's financial performance aligning with analysts' expectations.
2. **Analyst Projections**: Recent forecasts for Q2 2025 show an estimated EPS of $10.62, reflecting a 3.7% year-over-year increase. Revenue estimates are set at $3.39 billion, indicating a 7.3% year-over-year growth. These figures are in line with the company's historical performance and market trends.
3. **Recent Performance**: Regeneron's Q2 2024 earnings exceeded estimates, with adjusted EPS of $11.56, up 13% year-over-year, and sales of $3.55 billion, up 12%. This recent outperformance further supports the reliability of earnings forecasts.
4. **Analyst Confidence**: Despite some downward revisions in EPS estimates over the last 30 days, the consensus remains stable, indicating analysts' confidence in the company's performance. This is a positive indicator for earnings forecasts.
In conclusion, while there is always some degree of uncertainty in financial forecasting, the combination of Regeneron's consistent track record, analyst projections, recent performance, and analyst confidence suggest that forecasts for the company's earnings are reliable. Investors should continue to monitor the company's performance and any updates from analysts to make informed decisions.