Celgene Disappoints Investors by Meeting Estimates

By Chris Lange Updated Jan 13, 3:11PM EST · Published Jan 11, 12:40PM EST

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Celgene Disappoints Investors by Meeting Estimates — © Thinkstock

Celgene Corp. (NASDAQ: CELG) sank in Monday’s session after providing a business update, though this investor sentiment could be misplaced. The update that was largely in line with analyst expectations.

At JPMorgan’s 34th Annual Healthcare Conference, Celgene noted that it expects net product sales for 2016 to be roughly $10.5 billion to $11.0 billion, and earnings per share (EPS) is expected to be in the range of $5.50 to $5.70.

Thomson Reuters has consensus estimates that call for $11.13 billion in revenue and $5.68 in EPS for the full year.

Apart from this, a negative impact from foreign exchange rates is expected to be approximately $120 million in 2016. Also full-year sales of Revlimid are expected to be in the range of $6.6 billion to $6.7 billion.

Bob Hugin, chairman and CEO of Celgene, commented on the release:

In 2015, we delivered a strong year operationally and commercially with eight regulatory approvals, the acquisition of Receptos and significant acceleration of our pipeline. The momentum in our operations and the advancement of our pipeline gives us confidence in our 2020 targets and beyond.

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Preliminary 2015 financial results are expected to be $9.16 billion in net product sales and EPS of $4.71. The consensus estimates call for $9.23 billion in revenue and $4.83 in EPS for the full year.

The company also has some long-term targets:

2020 total net product sales to exceed $21 billion
Hematology franchise to exceed $14.8 billion
Oncology franchise to exceed $2.2 billion
I&I franchise to exceed $4 billion
Adjusted diluted EPS to exceed $13.00
Fully diluted share count of approximately 830 million

Shares of Celgene were trading down 5.6% at $102.87 on Monday, with a consensus analyst price target of $143.35 and a 52-week trading range of $92.98 to $140.72.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.