Celgene Corporation’s (CELG) fourth quarter 2011 preliminary unaudited adjusted (excluding stock-based compensation expense and other special items) earnings of $1.05 per share were above the year-ago earnings by approximately 46%.
Adjusted earnings (excluding stock-based compensation expense and other special items) for the full year 2011 climbed approximately 36% year over year to $3.79 per share. The year-over-year beat was attributable to strong sales of Celgene’s cancer products Revlimid (up 30% to $3.2 billion), Vidaza (up 32% to $705 million) and Abraxane ($386 million).
Abraxane was added to Celgene’s portfolio following the acquisition of Abraxis BioScience Inc. in October 2010. The Zacks Consensus Estimates currently stand at $1.00 and $3.38 per share for the fourth quarter and full year 2011, respectively.
Preliminary adjusted revenues in the final quarter of 2011 came in at $1.28 billion, marginally short of the Zacks Consensus Estimate of $1.3 billion. Adjusted revenues in the final quarter of 2011 were, however, 22% above the year-ago figure.
For full year 2011, sales came in at $4.8 billion, in line with the Zacks Consensus Estimate, but 34% above the year-ago sales. The actual results will be disclosed on January 26, 2012.
Rosy 2012 Forecast
Apart from announcing preliminary results, Celgene also provided a bright outlook for 2012. Adjusted earnings (excluding stock-based compensation expense and other special items) are projected in the range of $4.70-$4.80 per share, up 25%. Including the impact of stock-based compensation expense, 2012 earnings are expected in the range of $4.17-$4.32 per share. The Zacks Consensus Estimate for 2012 is $3.98 per share.
Adjusted revenues are projected in the range of $5.4-$5.6 billion, up 15%. The Zacks Consensus Estimate is at the lower-end of the guidance ($5.4 billion). Revlimid is expected to continue its strong performance. Sales of the drug are projected in the range of $3.75 – $3.85 billion, up 19%.
Celgene’s key growth engine, Revlimid, is currently available for the multiple myeloma (MM) and myelodysplastic syndrome (MDS) indications. Celgene is working on expanding Revlimid’s label into other indications. The efforts will continue throughout 2012. Moreover, Celgene has other interesting candidates in its pipeline.
Our Recommendation
We continue to have an Outperform recommendation on Celgene. We believe that Celgene, driven by its impressive oncology portfolio, expansion efforts, strong balance sheet and robust pipeline, will continue to outperform the broader market in the coming quarters.
Our optimism is justified by the Zacks #2 Rank (Buy rating) carried by the stock in the short run.
CELGENE CORP (CELG): Free Stock Analysis Report
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