Celgene Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Celgene (NASDAQ:CELG) will unveil its latest earnings on Thursday, October 25, 2012. 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 estimate of analysts is for profit of $1.16 per share, a rise of 19.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.15. Between one and three months ago, the average estimate moved up. It has dropped from $1.17 during the last month. Analysts are projecting profit to rise by 30% versus last year to $4.46.

Last quarter, the company came in at net income of $1.10 per share against a mean estimate of profit of $1.06 per share, beating estimates after missing them in the previous quarter. In the first quarter, it missed forecasts by 3 cents.

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A Look Back: In the second quarter, profit rose 31.5% to $367.4 million (82 cents a share) from $279.4 million (59 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 15.5% to $1.37 billion from $1.18 billion.

Wall St. Revenue Expectations: Analysts are projecting a rise of 13.7% in revenue from the year-earlier quarter to $1.41 billion.

Stock Price Performance: Between July 26, 2012 and October 19, 2012, the stock price rose $7.67 (11.4%), from $67.49 to $75.16. The stock price saw one of its best stretches over the last year between September 10, 2012 and September 21, 2012, when shares rose for 10 straight days, increasing 5% (+$3.69) over that span. It saw one of its worst periods between August 10, 2012 and August 17, 2012 when shares fell for six straight days, dropping 3.9% (-$2.83) over that span.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 21.4% over the last four quarters.

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 95.7% in the fourth quarter of the last fiscal year and 57.1% in the first quarter before increasing again in the second quarter.

Analyst Ratings: With 22 analysts rating the stock a buy, none rating it a sell and six 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 2.93 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)

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