Celgene Earnings: Profit Rises by Double-Figures for Fifth Consecutive Quarter

The combination of lower costs and higher revenue pushed S&P 500 (NYSE:SPY) component Celgene Corporation (NASDAQ:CELG) to a higher profit second quarter. Celgene is a biopharmaceutical company that develops innovative therapies to treat cancer and immune-inflammatory related diseases.

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Celgene Corporation Earnings Cheat Sheet

Results: Net income for the medical-bioengineering rose to $367.4 million (82 cents per share) vs. $279.4 million (59 cents per share) in the same quarter a year earlier. This marks a rise of 31.5% from the year-earlier quarter.

Revenue: Rose 15.5% to $1.37 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Celgene Corporation fell short of the mean analyst estimate of $1.06 per share. Analysts were expecting revenue of $1.35 billion.

Quoting Management: “The second quarter financial results were very strong and provide significant momentum for the second half of the year,” said Bob Hugin, Chairman and Chief Executive Officer of Celgene Corporation. “The recent positive apremilast phase III data is the first of multiple pivotal trial results and regulatory actions across our portfolio anticipated through early 2013. We have never been in a better position to deliver on our promise of helping to improve patients’ lives and provide value for our shareholders.”

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 24.9%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 38.8% from the year earlier quarter.

The company has now seen its net income rise for three quarters in a row. In the first quarter, net income rose 57.1% and in the fourth quarter of the last fiscal year, the figure rose 95.7%.

The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by 3 cents with net income of 99 cents versus a mean estimate of net income of $1.02 per share.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from $1.10 a share to $1.15 over the last ninety days. For the fiscal year, the average estimate has moved down from $4.39 a share to $4.35 over the last thirty days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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