Celgene Corporation (NASDAQ: CELG) is having a great start to the trading session this morning, and for good reason. The company reported its financial results for the third quarter, seeing strong growth and improving guidance. Of course, the news excited investors who are sending the stock on a run for the top. Today, we’ll talk about:
- The earnings report;
- what we’re seeing from CELG stock as a result; and
- what we’ll be watching for ahead.
CELG Announces Earnings
As mentioned above, Celgene is having an incredibly strong start to the trading session in the pre-market hours this morning after releasing its financial results for the third quarter. Here’s what we saw from the report:
- Net Sales – In terms of net sales, CELG did incredibly well, producing $3.890 billion during the quarter. That proved to be an 18% increase on a year over year basis.
- Revenue – Revenue also saw some strong growth, coming in at $3.892 billion, which also represents an 18% year over year increase.
- GAAP Earnings – In terms of GAAP earnings, the company generated net income of $1.082 billion, which works out to earnings per share in the amount of $1.50. That showed a vast improvement over the $988 million or $1.21 per share reported in the same quarter last year.
- Adjusted Income – In terms of adjusted net income, the company saw a 6% increase to $1.645 billion. Adjusted diluted EPS came in at $2.29, showing strong growth over last year’s $1.91.
- Guidance – Finally, the company raised its full year revenue guidance to $15.2 billion with OTEZLA net sales guidance increasing to $1.6 billion.
In a statement, Mark J. Alles, Chairman and CEO at CELG, had the following to offer:
Excellent top- and bottom-line momentum in the third quarter supports raising our 2018 financial guidance… We are focused on shaping Celgene’s future by rapidly advancing our late-stage pipeline, accelerating promising early research programs, and strengthening the organization.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Celgene, the news proved to be overwhelmingly positive. Not only did the company see increasing profits during the third quarter, it is expecting to see more of the same ahead. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (7:43), CELG is trading at $76.49 per share after a gain of $1.78 per share or 2.38% thus far today.
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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 seeing if the company does reach the strong revenue guidance that it has released. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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