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.

Start 2013 better than ever by saving time and making money with your Limited Time Offer for our highly-acclaimed Stock Picker Newsletter. Click here for our fresh Feature Stock Pick now!

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

CELG

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.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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