Health and Healthcare

Is Celgene's Outlook Good Enough for Investors?

Celgene Corp. (NASDAQ: CELG) reported its fourth-quarter results on Thursday morning. The biotech giant did beat earnings, but investors have to weigh whether it was enough when you consider that the stock was up 48% over the last year (ahead of earnings, not fiscal) and was up over 6% so far in 2015.

Celgene reported $1.01 in earnings per share and $2.09 billion in revenue for the fourth quarter. Thomson Reuters had consensus estimates of $0.99 in earnings per share and $2.08 billion in revenue. In the fourth quarter of the previous year, Celgene posted $0.76 in earnings per share and revenue of $1.76 billion.

Celgene gave guidance for the 2015 full year. Total net product sales are expected to be $9.0 billion to $9.5 billion, with and $4.60 to $4.75 in EPS for the year. The consensus estimates are $4.87 in EPS and $9.29 billion in revenue.

Adjusted R&D expenses were $478 million for the fourth quarter of 2014, compared to $460 million for the fourth quarter of 2013.

Operations generated cash flow of $2.81 billion for 2014, up 26% from the same period in the previous year. Celgene purchased approximately $2.93 billion of shares last year. At the end of December, Celgene had $3.14 billion remaining under the existing share repurchase program. The company ended the year with $7.55 billion in cash and marketable securities and roughly 800 million actual shares outstanding and 835 million fully diluted shares.

ALSO READ: Short Sellers Starting to Gang Up on Biotech

Celgene’s net product sales performance compared to the fourth quarter of the previous year:

  • Revlimid increased 16% to $1.32 billion.
  • Abraxane increased 17% to $236 million.
  • Pomalyst/Imnovid sales were $202 million in their first year.
  • Vidaza increased 8% to $154 million.
  • Otezla sales were $47 million.
  • All other product sales were $93 million, compared to last year’s $98 million.

Bob Hugin, chairman and CEO of Celgene, said:

2014 was an outstanding year for Celgene with strong operating and financial results. Our significant operating momentum along with a number of key milestones provide great opportunity for 2015 and beyond.

On January 13, JMP Securities maintained a Market Outperform rating and raised its price target to $133 from $117. On the same day, Cantor Fitzgerald had a Buy rating and set its price target at $131.

ALSO READ: 5 Stocks That May Benefit From a Terrible Flu Season

Shares of Celgene closed Wednesday down 2.8% at $118.97. After the earnings report was released, shares were down about 1% at $117.49 just after the opening bell but recovered later in the morning. The stock has a consensus analyst price target of $125.17 and a 52-week trading range of $66.85 to $124.60.

Credit card companies are handing out rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.