Celgene Corp. (CELG) reported better-than-expected profit and revenue numbers for the third quarter of 2018 on strong product sales. Revenue climbed 18% to $3.89 billion and EPS jumped 20% to $2.29, while analysts predictions for revenue and EPS stood at $3.83 billion and $2.23, respectively.
The pharma company’s stock rose about 3% before the bell. However, the stock failed on to hold its early gains and was trading in the negative territory when the market opened and plunged to its yearly low within few minutes during Thursday’s morning session.
The Summit, NJ-based company lifted its revenue outlook to around $15.2 billion versus the previous guidance of around $15 billion. While the company increased its adjusted EPS outlook to $8.75-8.80 from the prior estimate of $8.70-8.75, it cut down its GAAP EPS outlook to $5.25-5.75 from the earlier target of $5.95-6.25.
The company also reaffirmed its revenue outlook of $19-20 billion and adjusted EPS target of achieving greater than $12.50 for 2020.
“Excellent top- and bottom-line momentum in the third quarter supports raising our 2018 financial guidance,” said CEO Mark Alles. He added, “We are focused on shaping Celgene’s future by rapidly advancing our late-stage pipeline, accelerating promising early research programs, and strengthening the organization.”
Product sales swelled 18% year-over-year to $3.89 billion, which comprises sales growth of Revlimid (+18%), Pomalyst/Imnovid (+23%), Otezla (+40%) and Abraxane (+15%). Celgene expects to launch five new late-stage products through 2020.
Today, Celegene’s peers Merck (MRK) and Bristol-Myers Squibb (BMY) reported mixed results for their recently ended quarter. Both the companies surpassed the consensus’ earnings estimates, but fell short of revenue predictions and were trading in the negative zone when the market opened.
Shares of Celgene have slipped 28% for the year-to-date period and 38% for the 52-week period, respectively. The stock hit its yearly high ($121.60) exactly on the same day last year.