Celgene Earnings: Profit Rises by Double-Figures for Fifth Consecutive Quarter

Lower costs helped S&P 500 (NYSE:SPY) component Celgene Corporation (NASDAQ:CELG) pull in a higher profit in 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 Corporation Earnings Cheat Sheet

Results: Net income for Celgene Corporation rose to $424.2 million (97 cents per share) vs. $373 million (81 cents per share) in the same quarter a year earlier. This marks a rise of 13.7% from the year-earlier quarter.

Revenue: Rose 13.6% to $1.42 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Celgene Corporation fell short of the mean analyst estimate of $1.16 per share. It beat the average revenue estimate of $1.35 billion.

Quoting Management: “During the third quarter we generated excellent financial results and advanced major initiatives across our businesses that will serve as the foundation for future growth,” said Bob Hugin, Chairman and Chief Executive Officer of Celgene Corporation. “Positive results from late-stage studies for ABRAXANE, apremilast and pomalidomide create a solid path toward significant expansion of our portfolio and vital new options for patients in the future.”

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 19.9%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 37.3% from the year earlier quarter.

The company has now seen its net income rise for three quarters in a row. In the second quarter, net income rose 31.5% and in the first quarter, the figure rose 57.1%.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of $1.10 versus a mean estimate of net income of $1.06 per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $1.20 a share to $1.19 over the last sixty days. The average estimate for the fiscal year is now $4.46 per share, down from $4.47 sixty days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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