Many investors were on edge this weekend after the stock market plummeted on Thursday due to China’s faltering stock market and concerns that the Fed will raise interest rates. Consequently, the Dow fell by 500 points, undoing the progress it had made all year. Despite the volatility, activity on Wall Street must go on. Although earnings season is coming to a close, there are still a handful of companies reporting earnings this week along with several biotechnology companies awaiting drug approvals. Here is what to look for in Seadrill Ltd (NYSE:SDRL), Sarepta Therapeutics Inc (NASDAQ:SRPT), and Amgen, Inc. (NASDAQ:AMGN)
Oil giant Seadrill Ltd is slated to announce second quarter 2015 earnings results on Thursday, August 27, after market close. The Street expects the company to post earnings of $0.63 per share on $1.18 billion in revenue, falling from $0.70 earnings per share on $1.22 billion in revenue year-over-year.
Things haven’t been going so well for Seadrill as the company’s shares have plummeted almost 55% since its highest point in May. The main driver of the company’s decline is the plunging price of oil, which has impacted Seadrill’s operations. The cost of oil began to fall last summer, causing the offshore drilling market to slow to almost a standstill.
It is also worth noting that while oil has been falling for more than a year, it has not had an effect on Seadrill’s earnings. In fact, the company has posted better-than-expected earnings results for the past two quarters. However, investors fear the potential impact the depleting oil prices will have on the company in 2016.
Additionally, investors have been selling off Seadrill’s stock as the Chinese economy continues to plummet. Since China is the second-biggest oil consumer behind the United States, investors fear that a weak yuan could potentially decrease the demand for fuel. On the other hand, the International Energy Agency stated that oil demand is increasing in the other parts of the world, which will offset China’s slowing demand.
Out of three analysts polled by TipRanks over the past three months, one analyst is neutral on Seadrill and two are bearish. The average 12-month price target for Seadrill is $10, marking a 47.49% potential upside from where the stock last closed. On average, the all-analyst consensus for Seadrill is Strong Sell.
Sarepta Therapeutics Inc
Sarepta Therapeutics Inc focuses on developing RNA-based therapeutics for the treatment of rare, infectious, and other life threatening diseases.
Back in June, Sarepta announced that it had completed a New Drug Application for eterplirsen, its pipeline drug that targets the underlying cause of Duchenne muscular dystrophy (DMD), a genetic degenerative muscle disease. Patients with DMD suffer from severe muscle loss and pre-mature death. The disease affects about one in 3,500 boys globally. The deadline for FDA approval of eterplirsen is August 25.
On August 21, the company was granted Rare Pediatric Disease Designation for eteplirsen, supplementing the Orphan Drug Designation and Fast Track Status previously granted by the FDA for eteplirsen.
Out of seven analysts polled by TipRanks within the past three months, four are bullish on Sarepta and three are neutral. The average 12-month price target for the company is $40, marking an 18.13% potential upside from where the stock last closed. On average, the all-analyst consensus for Sarepta is Moderate Buy.
Biopharmaceutical company Amgen, Inc. develops therapeutics to treat patients suffering from serious illnesses. On Thursday, August 27, Amgen is expected to receive regulatory FDA approval for evolocumab in dyslipidemia in the United States. Evolocumab is an antibody that improves the liver’s ability to remove LDL-C, or “bad” cholesterol, from the blood by inhibiting roprotein convertase subtilisin/kexin type 9 (PCSK9).
If regulatory approval for Evolocumab is granted, Amgen will expand its cardiovascular franchise, which in turn will provide a material revenue stream for the company.
In other Amgen news, the company recently reached a $71 million settlement with 48 states in regards to claims that Amgen made unproven marketing claims about blockbuster drugs Aranesp and Enbrel. The claims accused Amgen of promoting higher dosages of Aranesp than what was approved by the FDA, promoting Aranesp for the treatment of anemia caused by cancer without FDA approval, and promoting Enbrel for the treatment of mild plaque psoriasis when the FDA only approved it for moderate to severe cases of the disease. Amgen did not admit any wrong doing as a part of the settlement.
Out of nine analysts polled by TipRanks within the past three months, six analyst are bullish on Amgen and three are neutral. The average 12-month price target for Amgen is $186.38, marking a 20.10% potential upside from where the stock last closed. On average, the all-analyst consensus for Amgen is Moderate Buy.