Genentech Inc. (NYSE: DNA) is initially looking like a severe disappointment to those who thought Cramer’s call last week was the right one. The largest biotech in the U.S. posted $0.82 EPS on $3.23 Billion in revenues. The company has also tightened its full-year 2008 non-GAAP earnings forecast to a range of $3.40 to $3.50 per share, revised from $3.35 to $3.45 per share.
First Call had estimates at $0.86 EPS on $3.23 Billion in revenues. For fiscal 2008, estimates are $3.43 EPS on $13.03 Billion in revenues.
The company did have disappointing drug sales as well:
Drug 2008 2007 Change
Rituxan® $651 $582 12%
Avastin®+ $650 $564 15%
Herceptin® $338 $329 3%
Lucentis® $216 $209 3%
Xolair® $129 $120 8%
Tarceva® $119 $102 17%
So far traders do not like this report, but the better news perhaps is that this slightly raised guidance is being treated well. Shares closed down 3% at $75.39. The initial reaction put shares down some 4% but they have recovered back to $75.40.
Jon C. Ogg
July 14, 2008
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.