Celgene Earnings: These Results Have Investors Guessing

Celgene Corporation (NASDAQ:CELG) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are slightly down.

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Celgene Corporation Earnings Cheat Sheet

Results: Net income increased 39.45% to $572 million ($1.32 per diluted share) in the quarter versus a net gain of $410.18 million in the year-earlier quarter.

Revenue: Rose 10.29% to $1.42 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Celgene Corporation reported adjusted net income of $1.32 per share. By that measure, the company beat the mean analyst estimate of $1.31. It missed the average revenue estimate of $1.46 billion.

Product Sales:

REVLIMID® sales for the fourth quarter increased 17 percent to $1,002 million and were driven by strong overall market share and increased duration of therapy. Fourth quarter U.S. sales of $577 million and international sales of $425 million increased 18 percent and 16 percent, respectively. Full year REVLIMID sales were $3,767 million, an increase of 17 percent.

ABRAXANE® sales for the fourth quarter were $106 million, an increase of 3 percent. U.S. sales were $84 million and international sales were $22 million, a decrease of 9 percent and increase of 90 percent, respectively. U.S. sales were affected by the restoration of the full supply of generic paclitaxel, the shortage of which benefited the fourth quarter 2011. Full year ABRAXANE sales were $427 million, an increase of 11 percent.

VIDAZA® fourth quarter sales increased 14 percent to $216 million. U.S. sales increased 3 percent to $88 million. International sales increased 23 percent to $128 million, primarily driven by market share increases in most regions. Full year VIDAZA sales were $823 million, an increase of 17 percent.

THALOMID® sales were $73 million in the fourth quarter, representing a 12 percent decrease; for 2012 sales were $302 million, a decrease of 11 percent.

Key Stats:

Revenue decreased 0.23% from $1.42 billion in the previous quarter. Net income increased 34.85% from $424.16 million in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.3 to a profit $1.35. For the current year, the average estimate is a profit of $4.89, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials.)