Adrian Johnson
TLDR:
- Regeneron Pharmaceuticals’ soft earnings may be explained by conservative accounting.
- Unusual items impacted profit, but are not expected to repeat in the coming year.
Regeneron Pharmaceuticals, Inc. has recently reported soft earnings, but shareholders do not appear concerned. The company’s profit results were impacted by a US$424m expense attributed to unusual items, which may not repeat in the future. Despite this setback, the company’s earnings per share has shown a steady annual increase of 13% over the last three years. While it’s important to consider other factors when analyzing a company, Regeneron Pharmaceuticals’ profit performance may be stronger than it initially appears.
Looking ahead, analysts are optimistic about Regeneron Pharmaceuticals’ profitability in the coming year, and investors may want to consider factors such as return on equity and insider transactions to further inform their decisions. It’s also crucial to assess the company’s valuation to determine if it is potentially over or undervalued. Regeneron Pharmaceuticals is known for its excellent balance sheet and good value, making it an attractive option for investors.
