The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Celgene met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and GAAP earnings per share expanded significantly.
Gross margins expanded, operating margins contracted, net margins expanded.
Celgene recorded revenue of $1.28 billion. The 17 analysts polled by S&P Capital IQ predicted revenue of $1.28 billion. Sales were 20% higher than the prior-year quarter's $1.07 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.05. The 25 earnings estimates compiled by S&P Capital IQ predicted $1.06 per share on the same basis. GAAP EPS of $0.81 for Q4 were 107% higher than the prior-year quarter's $0.44 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 94.0%, 130 basis points better than the prior-year quarter. Operating margin was 29.6%, 90 basis points worse than the prior-year quarter. Net margin was 31.9%, 1,230 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.31 billion. On the bottom line, the average EPS estimate is $1.12.
Next year's average estimate for revenue is $5.52 billion. The average EPS estimate is $4.83.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,454 members out of 1,505 rating the stock outperform, and 52 members rating it underperform. Among 394 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 379 give Celgene a green thumbs-up, and 15 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Celgene is outperform, with an average price target of $74.83.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.