Regeneron Pharmaceuticals Earnings: Here’s Why Investors are Not Happy Now

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 3.26%.

Regeneron Pharmaceuticals, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 14.53% to $1.47 in the quarter versus EPS of $-0.54 in the year-earlier quarter.

Revenue: Rose 237.13% to $414.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Regeneron Pharmaceuticals, Inc. reported adjusted EPS income of $1.47 per share. By that measure, the company beat the mean analyst estimate of $1.11. It beat the average revenue estimate of $392.64 million.

Quoting Management: “2012 was truly a transformative year for Regeneron as strong U.S. net sales of EYLEA drove our first full year of profitability on a GAAP and non-GAAP basis,” said Leonard S. Schleifer, M.D., Ph.D., President and Chief Executive Officer of Regeneron. “With the recent U.S. approval of EYLEA for the treatment of macular edema following central retinal vein occlusion (CRVO), and receipt of a Medicare J-Code for EYLEA in January 2013, we expect continued strong U.S. growth for EYLEA and forecast U.S. net sales of $1.2 billion to $1.3 billion in 2013. Outside the U.S., our partner Bayer HealthCare has begun to launch EYLEA for the treatment of neovascular age-related macular degeneration (wet AMD) in Japan, Europe, Australia, and other regions, and we expect to see substantial sales growth through 2013 and beyond as pricing approvals are received.”

Key Stats (on next page)…

Revenue decreased 3.06% from $427.69 million in the previous quarter. EPS decreased 14.53% from $1.72 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 $1.16 to a profit $1.19. For the current year, the average estimate has moved up from a profit of $3.5 to a profit of $3.59 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)