Earnings Preview: Schering-Plough

Schering-Plough (SGP) is expected to report Q3 earnings Tuesday Oct. 21 before market open, with a conference call scheduled for 8:00 am ET.

Guidance

Analysts are looking for a profit of 31c on revenue of $4.49B. The consensus range is 29c to 34c for EPS, and revenue of $3.95B to $4.67B, according to First Call

Analyst Views

Positive drivers for this earnings period include the full year inclusion of Organon Bio-Sciences acquisition and strong sales of Remicade. The primary negative drivers for this quarter is the continued erosion in the company's anti-cholesterol drug sales resulting from the Vytorin fall-out.

In late August, Am Tech noted that it expects the upward trend in pharmaceutical names to continue as investors rotate into the traditionally counter-cyclical safety the space offers. The firm believes Schering Plough is well positioned for the upside and reiterated its Buy rating on the stock.