Earnings Preview: Organon (OGN) Q3 Earnings Expected to Decline

Core Viewpoint - Organon (OGN) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending September 2024, with the earnings report set to be released on October 31, 2024 [1] Financial Expectations - The consensus estimate for Organon's quarterly earnings is $0.85 per share, reflecting a year-over-year decrease of 2.3% [2] - Expected revenues for the quarter are $1.56 billion, which represents a 2.7% increase from the same quarter last year [2] Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 1.06% higher, indicating a reassessment by covering analysts [3] - The Most Accurate Estimate for Organon is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.76%, suggesting a bearish outlook from analysts [6] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [5] - Organon currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [6] Historical Performance - In the last reported quarter, Organon exceeded the expected earnings of $1.06 per share by delivering $1.12, resulting in a surprise of +5.66% [7] - Over the past four quarters, Organon has beaten consensus EPS estimates three times [7] Conclusion - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [8] - Organon does not appear to be a compelling candidate for an earnings beat, and investors should consider additional factors before making investment decisions [8]