Earnings Preview: Biogen Idec

Biogen Idec (BIIB) is expected to report Q4 earnings with a conference call scheduled for 8:30 am ET Wednesday.

Guidance

Analysts are looking for a profit of 80c on revenue of $835M. The consensus is 66c to 88c for EPS, and revenue of $809M to $862M, according to First Call. In October, the company said it was seeking a buyer to enhance shareholder value. Activist investor Carl Icahn, an outspoken critic of the company, has been mentioned as a possible buyer, but said the company may be better off selling to larger pharmaceutical company.

In December, the company announced that it couldn't find an appropriate buyer and its shares fell about 30%. BMO Capital expressed concern about the lack of potential buyers, noting that the lack of interest might highlight the industry's negative view of Biogen's business. Subsequently, the company raised 2007 EPS guidance to the high end of the $2.60 to $2.70 range. Recently, industry observers have questioned Biogen's long-term growth prospects. An increase in revenue is dependent on Avonex and Rituxin, both of which are moderating in growth.

Analyst analysis

Analysts have mixed sentiment for the prospects of controversial Chron's drug Tysabri. UBS expects that the drug's approval will have a modest impact on revenues, and maintains their Sell rating. Banc of America upgraded the shares to Buy from Neutral, with a price target of $73.