After releasing its earnings early this morning, Exelixis, Inc. (NASDAQ: EXEL) is making a run for the top in the market this morning, The company’s earnings beat expectations in a big way, exciting investors who are pushing the stock for the top as we speak. Today, we’ll talk about:
- The financial results;
- what we’re seeing from EXEL stock; and
- what we’ll be watching for ahead.
EXEL Reports Earnings
As mentioned above, Exelixis is having a great start to the trading session this morning after reporting its financial results for the third quarter. Here’s what we saw from the report:
- Earnings – In terms of earnings, EXEL did overwhelmingly well. During the quarter, the company said that it generated net earnings of $126.6 million. That works out to a profit of $0.41 per share. Analysts were only expecting that the company would generate earnings of less than half at just $0.19 per share.
- Revenue – Revenue also proved to be a big hit. During the third quarter, analysts expected that the company would generate revenue in the amount of $166.4 million. However, the company actually reported revenue in the amount of $225.4 million.
In a statement, Michael M. Morrissey, Ph.D., President and CEO at EXEL, had the following to offer:
In the third quarter of 2018, we continued to grow our commercial business and make significant clinical development and regulatory progress for our pipeline… Cabozantinib franchise net product revenues during the quarter were $162.9 million, which represents a 12 percent increase compared to the second quarter of 2018. We also initiated the next wave of cabozantinib pivotal trials with the announcement of the COSMIC-311 study in differentiated thyroid cancer and expect additional pivotal trials launching later this year and into 2019. This will include studies evaluating cabozantinib in combination with leading immunotherapies, an approach supported by encouraging clinical data, including phase 1b dose escalation results of cabozantinib plus atezolizumab in advanced renal cell carcinoma presented at the 2018 European Society for Medical Oncology Congress last month.
Our team’s hard work provides strong momentum as we close out the year and move into 2019. In particular, we look forward to the U.S. Food and Drug Administration’s upcoming decision on our supplemental New Drug Application for CABOMETYX® in previously-treated advanced hepatocellular carcinoma, which has a January 14, 2019 action date, and for which we are fully launch ready. We are also pleased with Ipsen’s regulatory progress, including gaining a positive opinion in the European Union for previously-treated hepatocellular carcinoma, and Canadian regulatory approval for advanced renal cell carcinoma. Each of these milestones has the potential to support broadened access to CABOMETYX in key regions, and underscores our commitment to making Exelixis-discovered medicines globally available to cancer patients in need.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Exelixis, the news proved to be overwhelmingly positive. After all, the company beat expectations on all accounts when it comes to earnings. So, it comes as no surprise that excited investors are sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:48), EXEL is trading at $18.31 per share after a gain of $3.36 per share or 22.47% 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 EXEL. In particular, we’re interested in following the company to see if the company continues to generate such positive results. Nonetheless, we’ll continue to keep a close eye on the news and bring it to you as it breaks!
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