Celgene Earnings, Guidance Fail to Live Up to Investor Expectations

By Chris Lange Updated Jan 13, 2:25PM EST · Published Jan 28, 12:05PM EST

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Celgene Earnings, Guidance Fail to Live Up to Investor Expectations — © Thinkstock

Celgene Corp. (NASDAQ: CELG) reported its fourth-quarter financial results before the markets opened on Thursday. The company had $1.18 in earnings per share (EPS) on $2.56 billion in revenue. That compared to consensus estimates from Thomson Reuters that call for $1.22 in EPS on $2.54 billion in revenue. The same period from the previous year had $1.01 in EPS on $2.09 billion in revenue.

It’s worth noting that the net negative impact of currency on net product sales was 1%.

24/7 Wall St. also covered Celgene’s most recent short interest report along with a few other major biotechs.

Revlimid sales for the fourth quarter increased 18% to $1.56 billion and were driven by increased duration of therapy in the United States and market share gains in newly diagnosed multiple myeloma in Europe. Fourth-quarter U.S. sales of $956 million and international sales of $605 million increased 20% and 15%, respectively. Full-year Revlimid sales were $5.80 billion, an increase of 16%.

In 2015, Celgene repurchased roughly $3.26 billion of shares. At the end of December, Celgene had $3.89 billion remaining under its existing share repurchase program.
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In terms of full-year 2016 guidance, the company expects EPS in the range of $5.50 to $5.70, net product sales of $10.5 billion to $11.0 billion, and Revlimid net sales in the range of $6.6 billion to $6.7 billion. The consensus estimates for the full year call for $5.69 in EPS on $11.13 billion in revenue.

For the first quarter, Celgene expects EPS in the range of $1.27 to $1.30, versus the consensus estimate of $1.30 in EPS.

Bob Hugin, chairman and CEO of Celgene, commented on earnings:

Celgene delivered outstanding operating and financial results in 2015. Our extraordinary operating momentum and key regulatory approvals in 2015 increase our prospects for significant growth in 2016 and beyond,” “In 2016, we will continue to leverage our global operations and advance our deep and diverse pipeline to accelerate the next generation of transformational medicines.

Operations generated cash flow of $2.48 billion for 2015, a decrease of 12% year over year, primarily driven by an increase in upfront collaboration payments. On the books, the company ended the year with $6.55 billion in cash and marketable securities.

Shares of Celgene were trading down 6% at $95.93 on Thursday, with a consensus analyst price target of $142.53 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.