Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of biotechnology company Incyte
So what: Incyte's first-quarter beat was so wide -- EPS loss of just $0.36 versus the consensus loss of $0.48 -- that analysts are being forced to raise their valuation estimates yet again. Strong early response to its blood cancer drug Jakafi and a $15 million milestone payment from drug giant Novartis also boosted revenue well above the consensus, suggesting that Incyte has plenty of tailwinds working in its favor.
Now what: Expect the operating momentum to continue. Management now sees full-year 2012 revenue of $107 million, up significantly from its prior view of $67 million. Of course, with the stock busting through its 52-week high on today's report -- up a whopping 84% from its November lows -- and trading at a price-to-sales multiple of 25, much of Incyte's upside might already be baked into the price.
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