Celgene Corp Earnings: Fifth Consecutive Quarter of Double-Digit Revenue Growth

S&P 500 (NYSE:SPY) component Celgene Corporation (NASDAQ:CELG) reported net income above Wall Street’s expectations for the fourth 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 Fourth Quarter

Results: Net income for the biotechnology company rose to $410.2 million (91 cents per share) vs. $209.6 million (44 cents per share) in the same quarter a year earlier. This marks a rise of 95.7% from the year earlier quarter.

Revenue: Rose 19.8% to $1.28 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CELG reported adjusted net income of $1.05 per share. By that measure, the company beat the mean estimate of 95 cents per share. Analysts were expecting revenue of $1.29 billion.

Quoting Management: “Our 2011 record financial and operational results reflect the strength of our operating momentum worldwide in a dynamic and challenging economic environment,” said Bob Hugin, Chairman and Chief Executive Officer of Celgene Corporation. “The accomplishments of 2011 have strategically positioned us to capitalize on multiple transformational milestones for Celgene in 2012.”

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 35.8%, 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 four straight quarters. In the third quarter, net income rose 32.7% while the figure climbed 79.8% in the second quarter and 9% in the first quarter from the year earlier.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 11 cents in the third quarter and by one cent in the second quarter.

Gross margins expanded last quarter, rising 4.5 percentage points to 94% from the year earlier quarter. This snaps a streak of two consecutive quarters of shrinking margins.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the first quarter of the next fiscal year has risen to 99 cents per share from 86 cents. The average estimate for the fiscal year is $3.33 per share, a rise from $3.25 ninety 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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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com