Celgene (CELG) Stock: Taking A Dive On Updated Guidance


Celgene Corporation (NASDAQ: CELG) is having an overwhelmingly rough start to the trading session today, and for good reason. The company released long-term guidance that proved to be a major concern among investors, who are ultimately sending the stock tumbling. As is normally the case, our partners at Trade Ideas were the first to alert us to the declines. At the moment (9:36), CELG is trading at $97.07 per share after a loss of $22.49 per share (18.81%) thus far today.

CELG Takes A Dive On Poor Guidance

As mentioned above, Celgene Corporation is having a rough day in the market today after the company announced that it has reduced its long-term sales guidance for the year 2020. In the announcement, the company guided long-term revenue to be between $19 billion and $20 billion. That’s a steep drop from the more than $21 billion the company had previously guided towards. The company also reduced its earnings-per-share guidance to more than $12.50 from more than $13.00.

Unfortunately, the newly released guidance outweighed the company’s better-than-expected third quarter results. During the quarter, CELG beat earnings expectations by $0.03. However, according to Mizuho AnalystSalim Syed, that really doesn’t matter. Here’s what Syed wrote with regard to CELG:

Celgene just reported 3Q17 results. Quarter doesn’t matter here (revlimid ok, decent miss on Otezla, total revenue missed on Otezla, but EPS beat by 3 pennies from cost control)… The most important thing in the press release is that CELG has taken down its 2020 guidance.”

In a statement, Mark Alles, CEO at CELG, had the following to offer about the changes:

In consideration of certain market dynamics and recent pipeline events, we are updating our 2020 outlook, and remain confident in our ability to deliver industry leading growth..

Over the coming months, we look forward to sharing data supporting our innovative, next generation pipeline products and significant growth drivers.”

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on CELG. In particular, we’re interested in following the company to see if conditions start to improve, leading to improved guidance. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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