Twenty-five healthcare firms reported their earnings in the week ended August 31, bringing the sector’s overall reporting progress to 60% so far this quarter.
This week, the Health Care Select Sector SPDR Fund ETF (XLV) declined 1.41%. On a quarter-to-date basis, XLV rose nearly 6%, lagging behind the S&P500 index.
Earnings Recap
Of the 25 companies that reported results this week, health care services firm DaVita (DVA) was the only to miss earnings estimates. On the revenue side, 22 topped consensus while 3 lagged behind.
AbbVie (ABBV) posted a double-beat in its Q3 results driven by strong year-over-year revenue increases in some of its key drugs, especially Skyrizi. The company posted an EPS of $1.86 and revenue of $15.78 billion. It also raised full-year earnings outlook, but it is still falling below consensus.
UnitedHealth (UNH) also beat Wall Street estimates for its Q3 results and raised its FY25 EPS guidance. The company reported adjusted EPS of $2.92 on revenue of $113.2 billion in the quarter.
Merck (MRK) topped analysts’ estimates for both earnings and revenue. However, the stock declined after the pharma giant narrowed the top end of its full-year 2025 sales outlook. The company reported earnings of $2.58 per share and revenue of $17.3 billion.
Baxter International (BAX), DaVita (DVA) and Revvity (RVTY) were the three companies that missed revenue estimates.
At the industry level, 3 pharmaceutical companies, 5 biotechnology companies, and 2 managed healthcare firms have released their quarterly reports. 13 were from the health care equipment, health care facilities, health care services, and health care distributors industry, while 2 were life sciences tools and services firms.
Out of the 36 companies that have reported earnings quarter-to-date, 94% topped earnings forecasts while 88.8% reported better-than-expected revenue.
The coming week will see companies including Pfizer (PFE), Amgen (AMGN) and Moderna (MRNA) releasing their Q3 print.