Earnings Preview: Celgene Corp.

Celgene Corporation (CELG) is expected to report Q3 earnings before market open Thursday Oct. 23, with a conference call scheduled for 9:00 am ET.

Guidance

Analysts are expecting a profit of 39c on revenue of $589M. The consensus range for EPS is 34c to 46c with a revenue range of $570M to $605M, according to First Call. For Q2 the company reported EPS 37c vs. consensus of 35c and revenue of $572M versus consensus of $539M.

Analyst Views

Positive catalysts for Q3 earnings quarter include growing European sales of Thalomid for the treatment of myeloma. The major Risks to Celgene earnings continues to be its dependence on Thalomid and Revlimid, for the majority of its revenue.

On October 21, Jefferies noted that Revlimid sales could be slightly lower than consensus. The firm says sales could come in slightly below consensus due to seasonality and FX impact, but believes low expectations are already priced into the stock. The firm recommends buying the stock on weakness, and maintains a Buy rating. Jefferies lowered its target to $77 from $81.