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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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Novartis. Try any of our Foolish newsletter services free for 30 days.