Monday, April 23, 2001
While many high tech companies are severely ratcheting down EPS estimates, biotech companies are meeting or beating their numbers. All five of the profitable biotech companies reporting last week met or beat their EPS estimates last week, thanks largely to strong top lines. And including Genentech Inc. (DNA) and Biogen Inc. (BGEN) - which announced earnings the prior week - biotech is batting .1000 on meeting or beating the Street's expectations for the first quarter.
But while biotech prices have moved up nicely in the equity updraft of the past two weeks investors haven't rotated from the tech space into biotech. Indeed, the group of five EPS winners added a mere $162.9 million in market cap. The number looks even more miniscule given the strong performance of the equity markets last week, during which the NASDAQ added 10%.