Celgene Corporation (NASDAQ: CELG)
As expected, Celgene reported earnings for the third quarter. Also as many expected, the company beat expectations with regard to EPS. However, the stock is declining in pre-market trading; this has, unfortunately, become the expectation for CELG. Today, we’ll talk about earnings, what we’re seeing in the market as a result, and what we can expect to see from the stock moving forward.
CELG Beats Earnings Per Share Expectations
While Celgene beat expectations with regard to earnings per share, the company missed expectations with regard to revenue. Here’s what we saw from the report:
- Earnings Per Share – In the quarter, analysts expected CELG to produce earnings per share at $1.21. However, the company beat those expectations, reporting earnings per share at $1.23.
- Revenue – Unfortunately, the company missed expectations with regard to revenue. In the quarter, analysts expected Celgene to generate revenue in the amount of $2.4 billion. In the quarter, the company reported revenue at $2.33 billion.
All in all, in my opinion, the earnings report was overwhelmingly positive. Sure, I would have loved to have seen CELG produce revenue that was up to par with expectations, but with solid earnings, it’s hard to complain.
Celgene Declines After Earnings
While earnings were positive overall, it seems at first glance that investors were a bit upset with revenue. After all, the stock is declining quite a bit in the market in pre-market trading. Currently (9:05), CELG is trading at $122.85 per share after a loss of $4.32 or 3.40%. However, looking into the history of Celgene’s reactions after earnings, this type of movement is more or less expected. Generally, we see declines after earnings followed by a strong recovery.
What We Can Expect To See Moving Forward
As mentioned above, the report from CELG was positive overall. Although revenue was a slight miss, earnings came in above expectations, leveling the playing field. Those who have traded CELG around earnings in the past know that around this time declines are expected, however gains are coming soon. With that said, I’m expecting for today to be a relatively bad day for CELG, but that doesn’t mean that things will stay this way; in fact, I’m expecting a strong recovery. So, if you’re looking to turn a profit from CELG and already own the stock, don’t be too concerned about the declines today; we’ll see positive movement soon enough. If you don’t already own Celgene, you may want to consider buying at the bottom today and taking advantage of tomorrow’s uptrends!
What Do You Think?
Where do you think CELG is headed and why? Let us know your opinion in the comments below!