On April 11, Genentech (NYSE:DNA) released first-quarter earnings for the period ended March 31.
- Total revenues jumped by 43%, due to strong performance from cancer blockbuster Avastin and the launch of Lucentis.
- Genentech's leading product, Avastin, witnessed a 34% rise in U.S. sales to $533 million, putting it on track to break the $2 billion barrier this year.
- Genentech and partner Biogen Idec (NASDAQ:BIIB) submitted a supplemental Biologics License Application to the FDA to include treatment of active rheumatoid arthritis by existing product Rituxan. This would be an important label expansion for a product that is already a blockbuster drug.
- The company continues to expect approximately 25%-30% growth in non-GAAP EPS for full-year 2007.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change | |
|---|---|---|---|
|
Sales |
$2,843 |
$1,986 |
43.2% |
|
Net Profit |
$706 |
$421 |
67.7% |
|
EPS |
$0.66 |
$0.39 |
69.2% |
|
Diluted Shares |
1,071 |
1,075 |
(0.4%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
86.2% |
86.8% |
(0.6) |
|
Operating Margin |
37.3% |
32.4% |
4.8 |
|
Net Margin |
24.8% |
21.2% |
3.6 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$2,903 |
$2,284 |
27.1% |
|
Accounts Rec. |
$1,692 |
$1,134 |
49.2% |
|
Inventory |
$1,297 |
$804 |
61.3% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
No Data |
No Data |
No Data |
|
Long-Term Debt |
$2,267 |
$2,103 |
7.8% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
No Data |
No Data |
N/A |
|
Capital Expenditures |
$209 |
$253 |
(17.4%) |
|
Free Cash Flow |
No Data |
No Data |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
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