Health and Healthcare

What to Expect From Celgene Earnings

Chris Lange

Published: November 4, 2015 1:40 pm

Last Updated: January 13, 2020 5:32 pm

Celgene Corp. (NASDAQ: CELG) is scheduled to report its third-quarter financial results before the markets open on Thursday. Thomson Reuters consensus estimates call for $1.22 in earnings per share (EPS) on $2.40 billion in revenue. In the same period of the previous year, the biotech company posted EPS of $0.97 and $1.98 billion in revenue.

This is a top biotech pick among analysts, and some feel that it has solid upside potential for not just the rest of 2015 but even beyond. Celgene has an outstanding partnered pipeline that analysts think is low risk and has the potential to yield several blockbuster drugs. Jefferies in particular believes the company can grow earnings 15% on a compounded annual growth rate basis going forward.

The company provided strong guidance earlier this year on its Otezla launch and encouraging feedback from doctors on the potential of new triplet regimens in myeloma. Analysts across Wall Street are raising their estimates for the drug as, after a little more than a year on the market, Otezla, which treats psoriasis and psoriatic arthritis, has achieved considerable prescriptions among physicians.

Celgene’s blockbuster blood cancer drug Revlimid continues to dominate. Pomalyst sales grew nearly 46% year over year last quarter. Cancer drug Abraxane is also growing at a respectable rate, so the company continues to have a strong lineup of top-selling drugs. While second-quarter numbers were solid, the rest of the year could prove to be better.

A few analysts weighed in on Celgene ahead of its earnings report:

• JPMorgan reiterated a Buy rating with a $152 price target.
• RBC Capital reiterated a Buy rating with a $150 price target.
• Jefferies has a $137 price target.
• Raymond James reiterated a Strong Buy rating with a $161 price target.
• Jefferies reiterated a Buy rating with a $140 price target.

So far in 2015, Celgene has outperformed the market, with the stock is up 13% year to date. Over the past 52 weeks, the stock is up nearly 18%.

Shares of Celgene were trading at $125.86 Wednesday, with a consensus analyst price target of $147.47 and a 52-week trading range of $92.98 to $140.72.

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