Seattle Genetics Earnings: Streak of Three Straight Losses Snapped
Seattle Genetics, Inc. (NASDAQ:SGEN) climbed to a profit in the first quarter and beat Wall Street’s expectations in the process. Seattle Genetics is a biotechnology company focused on the development and commercialization of monoclonal antibody-based therapies for the treatment of cancer and autoimmune disease.
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Seattle Genetics Earnings Cheat Sheet for the First Quarter
Results: Reported a profit of $12.3 million (11 cents per diluted share) in the quarter. Seattle Genetics, Inc. had a net loss of $32.7 million or a loss 30 cents per share in the year-earlier quarter.
Revenue: Rose more than threefold to $48.2 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Seattle Genetics, Inc. beat the mean analyst estimate of a loss of 12 cents per share. It fell short of the average revenue estimate of $52.3 million.
Quoting Management: “The commercialization of ADCETRIS continues to be strong, and we are pleased by the acceptance and utilization of ADCETRIS among oncologists and patients with relapsed Hodgkin lymphoma and systemic anaplastic large cell lymphoma (sALCL),” said Clay B. Siegall, Ph.D., President and Chief Executive Officer of Seattle Genetics. “Our long-term vision for ADCETRIS is to expand its use into earlier lines of HL and sALCL therapy and into other CD30-positive malignancies. To that end, we are conducting a robust clinical development program with ADCETRIS, including clinical studies to broadly assess CD30 expression in both hematologic malignancies and solid tumors, as well as to evaluate activity and tolerability of ADCETRIS in these patient populations. Initial data from these clinical studies will be presented at the upcoming American Society of Clinical Oncology (ASCO) annual meeting and we have multiple late-stage trials that are already underway or are about to begin to further evaluate the broad potential of ADCETRIS.”
For three consecutive quarters, the company has topped analyst estimates. It beat the mark by 6 cents in the fourth quarter of the last fiscal year and by 11 cents in the third quarter of the last fiscal year.
The company’s profit in the latest quarter follows losses in the three previous quarters. The company reported a net loss of $27.2 million in the fourth quarter of the last fiscal year, a loss of $40.7 million in the third quarter of the last fiscal year and a loss of $51.5 million in the second of the last fiscal year.
Revenue has now increased for three consecutive quarters. In the fourth quarter of the last fiscal year, revenue rose more than sixfold to $48.9 million while the figure rose 29.2% in the third quarter of the last fiscal year from the year earlier.
Looking Forward: Analysts seem more positive about the company’s results for the next quarter than three months ago. The average estimate for the second quarter has moved from a loss of 25 cents a share to a loss of 11 cents over the last ninety days. Over the past ninety days, the average estimates for the fiscal year has risen from a loss of 77 cents per share to a loss of 45 cents.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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