Celgene (CELG) Stock: Earnings In Focus

Celgene Corporation (NASDAQ: CELG)

Celgene, like most other biotechnology stocks, is having a rough time in the market today. After the company released a mixed earnings report, the bear tore through the biotechnology sector. Today, we’ll take a look at what we saw from the earnings report, what we’re seeing in the market, and what we can expect to see from CELG moving forward. So, let’s get right to it…

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Celgene Reports Mixed Results

As expected, CELG reported its results for the fourth quarter today before the opening bell. As mentioned above, the Celgene earnings report for the fourth quarter was mixed. Here’s what we saw:

  • Earnings Per Share Unfortunately, in terms of earnings, CELG produced a miss. While analysts expected to see the company report earnings in the amount of $1.02 per share, the company actually reported earnings per share in the amount of $1.00.
  • Top-Line Revenue – While earnings per share proved to be a miss, the company did beat expectations with regard to top-line revenue. For the fourth quarter, analysts expected to see revenue in the amount of $2.5 billion. However, CELG actually reported revenue for the quarter in the amount of $2.6 billion.
  • Guidance – After reporting earnings, CELG also made an announcement with regard to full-year guidance. According to the company, they are expecting to see the same guidance they released earlier. This means that in terms of earnings per share, CELG is expecting to generate between $5.50 and $5.70 for the full year. If this is indeed the case, it will prove to be a growth of 19% year-over-year.

How The Market Reacted To The News

When it comes to things that cause movement in the market, there are few that will cause as big an effect as earnings reports. However, in this particular case, earnings were mixed, so not much movement is expected. In the beginning of the trading session, we saw slight declines. However, as the morning continued, the bears took hold of the biotechnology market and started tearing it apart. As a result, CELG is down quite a bit thus far today. Currently (11:18), the stock is trading at $98.06 after a loss of $4.25 per share or 4.15% so far today.

What We Can Expect To See From CELG Moving Forward

In the case of Celgene, I’m expecting to see overwhelmingly positive news from the stock moving forward. The reality is that CELG has proven over time that it is an incredible company. The company is most well known for Revlimid, as well as several oncology products that include Vidaza, Istodax, Pomalyst, Thalomid, and Abraxane. Each one of these products is showing exceptional sales and generating decent revenue for the company. It’s also worthwhile to mention that CELG has an incredible pipeline. The company currently has 4 prospective treatments that have been submitted to the FDA for approval. Not to mention the vast quantity of other treatments that have already been approved and are in the midst of clinical trials. To look at the entire pipeline, click here; what you will see is one of the most impressive pipelines in the biotech space. All in all, things are looking great for CELG in the long run!

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What Do You Think?

Where do you think CELG is headed moving forward, let us know your opinion in the comments below!

[Image Courtesy of Wikipedia]

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