This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Genzyme Offers Upbeat Forecast

Updated from 11:31 a.m. EDT

Genzyme (GENZ) blew past earnings estimates for the second quarter, expanded its gross margins and increased its guidance, sending the biotech company's shares higher Thursday.

Genzyme earned $123.6 million, or 46 cents a share, in the quarter compared with $78.2 million, or 33 cents a share, a year ago. Excluding amortization and the effect of convertible debt, the company earned $149 million, or 57 cents a share. Analysts estimated a profit of 53 cents a share.

Revenue increased 22% to $668.1 million from $549.6 million. Shares of Genzyme were up $3.82, or 6.2%, to $65.15.

"We had a tremendous quarter, with strong revenue growth, continued expansion of the gross margin, solid cash flow, and earnings growth that exceeded our expectations," Henri A. Termeer, Genzyme's chairman and CEO, said in a press release.

For the quarter, Genzyme's gross margin was 78% of revenue, up from 74% a year ago, thanks to improved margins for Renagel, Synvisc and enzyme replacement products, along with its exit from the generic cyclosporine business.

For the third quarter, Genzyme expects earnings of 45 cents to 47 cents a share, or 55 cents to 57 cents a share before items. The company increased its revenue guidance for the year to between $2.6 billion and $2.8 billion from a range of $2.5 billion to $2.7 billion.

Genzyme raised its full-year GAAP earnings per share guidance to a range of $1.75 to $1.80 from $1.72 to $1.78. The company lifted its profit forecast to between $2.20 and $2.25 excluding items, which follows a previous upward adjustment in its outlook.

Estimated earnings before items exclude amortization and in-process research and development costs of 45 cents a share for the year and amortization expenses of 10 cents a share for the third quarter.

Genzyme's performance was the result of major investments over a long period of time, Termeer said during a conference call Thursday. The company has been working toward sustainable growth by increasing production capabilities and sales, he said, but not all businesses are contributing as much. Genzyme plans to further develop its newer oncology, renal and bone care divisions.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $124.10 -0.11%
FB $83.60 0.71%
GOOG $551.25 -0.71%
TSLA $185.00 0.00%
YHOO $45.10 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs