Investors continue to navigate their way through a choppy first quarter of 2023. While headline BLS jobs numbers remain strong, layoff announcements have become widespread to start the new year, especially in the tech sector.
Fourth quarter earnings seasons has seen its share of disappointment results and almost universally cautious forward guidance. And this week both Intel (INTC) and Goldman Sachs (GS) have disclosed they are massively slashing their dividend payouts to shore up their balance sheets. Investors will just have to add potential dividend cuts to their litany of worries about the current market.
One sector that seems to be holding up better than most in this economy is healthcare. In today's column we will touch on three healthcare names I have highlighted before that have delivered solid fourth quarter numbers in recent days.
Let's start with Lantheus Holdings (LNTH) which I have profiled before as a solid covered call candidate.
The stock was up 20% in trading Thursday after the firm announced blowout Q4 results. Revenues from its cancer imaging agents more than doubled from the same period a year ago and Lantheus posted earnings for the quarter of $1.37. Both top and bottom-line numbers were far above expectations and the firm also boosted first quarter guidance substantially. The stock goes for approximately 14 times forward earnings.
Dynavax Technologies (DVAX) also posted a sold quarter yesterday. Revenues did slip 5% as sales from its adjuvant used in some Covid vaccines ebb as the pandemic fades from the scene. However, sales from its best of breed hepatitis B vaccine HEPLISAV-B vaccine more than doubled from 4Q2021 to $125 million, which was above expectations.
The company should see these sales grow from 30% to 45% in FY203 based on company guidance. The net cash on Dynavax's balance sheet has now hit a cool $400 million which will help it transition as Covid sales are likely to fall to negligible territory this year. The company continues to advance other vaccine candidates in its pipeline as well.
Finally, we have Harmony Biosciences (HRMY) , whose stock has seen some profit taking in recent sessions despite Q4 results that beat top and bottom line estimates. Sales rose 40% from the same period a year ago and should rise in the high 20s in FY2023 and the stock trades at just over 13 times forward earnings. This is another name with a strong balance sheet.
And those are three healthcare names that have been able to deliver solid fourth quarter results despite a difficult environment.
