Genentech Beats, But Street Wanted More

Biotech giant Genentech released earnings late Monday, reporting a 21% increase in profits. The company's net income increased to $685 million ($0.64/share), compared to $568 million ($0.53/year) last year. Excluding certain expenses, earnings were $0.73/share, beating analysts' estimates by a penny. Revenue jumped 22% to $2.91 billion, slightly under the $2.93 billion expected. Sales of Avastin, a cancer drug, were up 37% to $597 million. "This was a solid, but by no means a blowout quarter, and some people would like to see them blow away the numbers," said Jason Kantor, an analyst with RBC Capital Markets. The company said it continues to see earnings growth fall between 28-32% for the year. Shares of the company gained 0.32% in Monday's session before the earnings announcement. After the release, shares dropped 1.5% to $76.37 in extended trading.

Sources: Press release, Bloomberg
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Earnings call transcript: Genentech Q2 2007 Earnings

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