Celgene Corp Earnings Cheat Sheet: Beats Estimates

S&P 500 (NYSE:SPY) component Celgene Corporation (NASDAQ:CELG) reported net income above Wall Street’s expectations for the third quarter. Celgene is a biopharmaceutical company that develops innovative therapies to treat cancer and immune-inflammatory related diseases.

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Celgene Earnings Cheat Sheet for the Third Quarter

Results: Net income for Celgene Corporation rose to $373 million (81 cents per share) vs. $281.2 million (60 cents per share) in the same quarter a year earlier. This marks a rise of 32.7% from the year earlier quarter.

Revenue: Rose 37.3% to $1.25 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CELG reported adjusted net income of $1.02 per share. By that measure, the company beat the mean estimate of 86 cents per share. It beat the average revenue estimate of $1.2 billion.

Quoting Management: “The third quarter results demonstrate continued strong operational momentum throughout our global businesses. Our revenue is diversifying as we expand our global reach,” said Bob Hugin, Chief Executive Officer of Celgene Corporation. “Our investments in over 25 late-stage clinical trials are designed to support multiple regulatory submissions over the next 18 months to sustain long-term growth.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 38%, with the biggest boost coming in the first quarter when revenue rose 42.2% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 79.8% and in the first quarter, the figure rose 9%.

Gross margin shrank 0.6 percentage point to 92.4%. The contraction appeared to be driven by increased costs, which rose 48.9% from the year earlier quarter while revenue rose 37.3%.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 78 cents versus a mean estimate of net income of 77 cents per share.

Looking Forward: Analysts have a more positive outlook about the company’s results for next quarter. The average estimate for fourth quarter is 85 cents per share, an increase from 84 cents sixty days ago. At $3.25 per share, the average estimate for the fiscal year has risen from $3.24 sixty days ago.

Competitors to Watch: Novartis AG (NYSE:NVS), SuperGen, Inc. (NASDAQ:SUPG), Pfizer Inc. (NYSE:PFE), GlaxoSmithKline plc (NYSE:GSK), Bristol Myers Squibb Co. (NYSE:BMY), Genzyme Corporation (NASDAQ:GENZ), Cell Therapeutics, Inc. (NASDAQ:CTIC), Merck & Co., Inc. (NYSE:MRK), Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI), and Sanofi-Aventis SA (NYSE:SNY).

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(Source: Xignite Financials)