Neurocrine Biosciences (NBIX) Lags Q2 Earnings Estimates

Group 1: Earnings Performance - Neurocrine Biosciences reported quarterly earnings of $0.63 per share, missing the Zacks Consensus Estimate of $1.15 per share, and down from $0.95 per share a year ago, representing an earnings surprise of -45.22% [1] - Over the last four quarters, the company has surpassed consensus EPS estimates only once [2] - The company posted revenues of $590.2 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 7.56%, and up from $452.7 million year-over-year [2] Group 2: Stock Performance and Outlook - Neurocrine shares have increased approximately 7.5% since the beginning of the year, compared to the S&P 500's gain of 15.8% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the coming quarter is $1.31 on revenues of $571.55 million, and for the current fiscal year, it is $4.22 on revenues of $2.23 billion [7] Group 3: Industry Context - The Medical - Drugs industry, to which Neurocrine belongs, is currently in the top 40% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for Neurocrine is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6]