Seattle Genetics Second Quarter Earnings PREVIEW

Seattle Genetics, Inc. (NASDAQ:SGEN) will unveil its latest earnings on Wednesday, August 8, 2012. 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.

Seattle Genetics, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of 15 cents per share, a narrower loss from the year-earlier quarter net loss of 45 cents. During the past three months, the average estimate has moved down from a loss of 11 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at a loss of 15 cents during the last month.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked a loss of 11 cents per share versus a mean estimate of net loss of 12 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $50.3 million in revenue this quarter, a rise of more than threefold from the year-ago quarter. Analysts are forecasting total revenue of $206 million for the year, a rise of more than twofold from last year’s revenue of $94.8 million.

A Look Back: In the first quarter, the company’s loss narrowed to a loss of $12.3 million (11 cents a share) from a loss of $32.7 million (30 cents) a year earlier, beating analyst expectations. Revenue rose more than threefold to $48.2 million from $12.2 million.

Stock Price Performance: Between May 8, 2012 and August 2, 2012, the stock price rose $5.69 (29.9%), from $19.03 to $24.72. The stock price saw one of its best stretches over the last year between January 3, 2012 and January 12, 2012, when shares rose for eight straight days, increasing 12.4% (+$2.04) over that span. It saw one of its worst periods between May 24, 2012 and June 1, 2012 when shares fell for six straight days, dropping 7.5% (-$1.54) over that span.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 29.2% in the third quarter of the last fiscal year and more than sixfold in the fourth quarter of the last fiscal year before climbing again in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 5.23 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.

Analyst Ratings: There are seven out of 11 analysts surveyed (63.6%) rating Seattle Genetics a buy.

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

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