Celgene Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Celgene (NASDAQ:CELG) will unveil its latest earnings tomorrow, Thursday, January 24, 2013. Celgene is a biopharmaceutical company that develops innovative therapies to treat cancer and immune-inflammatory related diseases.

Celgene Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.18 per share, a rise of 21.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.19. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.18 during the last month. For the year, analysts are projecting profit of $4.42 per share, a rise of 28.9% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 3 cents, coming in at net income of $1.19 per share against an estimate of profit of. The company also topped expectations in the second quarter.

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Here’s how Celgene traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Stock Price Performance: Between October 22, 2012 and January 17, 2013, the stock price rose $23.19 (30.9%), from $75 to $98.19. The stock price saw one of its best stretches over the last year between December 28, 2012 and January 15, 2013, when shares rose for 12 straight days, increasing 27.9% (+$21.66) over that span. It saw one of its worst periods between December 20, 2012 and December 28, 2012 when shares fell for six straight days, dropping 2.9% (-$2.29) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 14.1% in revenue from the year-earlier quarter to $1.46 billion.

A Look Back: In the third quarter, profit rose 13.7% to $424.2 million (97 cents a share) from $373 million (81 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 13.6% to $1.42 billion from $1.25 billion.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 15.5% over the last four quarters.

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 57.1% in the first quarter and 31.5% in the second quarter before increasing again in the third quarter.

Analyst Ratings: With 24 analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.99 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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