Earnings Preview For Celgene Corporation (CELG, NVS)

Celgene Corporation CELG is expected to publish its Q1 earnings on Thursday, April 28, before the markets open. Analysts are expecting earnings per share to stand at $0.80, 27% higher than last year, when the company recorded earnings of $0.63 per share. Two months ago, analysts lowered their earnings estimates by $0.01. Celgene Corporation, based in New Jersey, is an integrated biopharmaceutical company primarily engaged in the discovery, development and commercialization of therapies designed to treat cancer and immune-inflammatory related diseases. It is involved in research in several scientific areas that may deliver therapies, targeting areas, such as intracellular signaling pathways in cancer and immune cells, immunomodulation in cancer and autoimmunity and placental cell, including stem and progenitor cell, research. The drug and cell therapies it develops are designed to treat life-threatening diseases or chronic debilitating conditions. The company's commercial stage products include REVLIMID, THALOMID (inclusive of Thalidomide Celgene and Thalidomide Pharmion, subsequent to the acquisition of Pharmion Corporation, or Pharmion), VIDAZA and FOCALIN. FOCALIN is sold exclusively to Novartis Pharma NVS. In January 2010, the company acquired Gloucester Pharmaceuticals, a pharmaceutical company. It currently employs over 4,000 people. The rating agencies seem to be very positive on Celgene's prospects as 23 of them have a Buy or Strong Buy rating on its shares. Analysts' optimism probably stems from their high expectations on Celgene's earnings growth. For Q1, it is expected earnings per share will rise 27% on a yearly basis, while for the whole year, analysts predict a 21.4% rise year-on-year. Revenues should stand at $1.08 billion, up 37.5% on the previous year's level. For the year as a whole, analysts are predicting revenues will reach $4.49 billion, an increase of 24% from a year ago. Celgene's shares have passed the $58 level in today's trading, the first time in three months, but are still well below analysts' mean target of $67.31. Tomorrow's results will provide some clue as to how quickly can Celgene reach the $67 level. Investors might be encouraged by Celgene's recent record of beating market expectations. Last year, Celgene's quarterly results were above analysts' predictions on three occasions.