This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Genentech Reports Profit Rise

Genentech (DNA) delivered a 1-cent earnings beat for the third quarter and surpassed expectations with sales of cancer-drug Avastin Monday. Sales of other products, however, fell shy of consensus targets, realizing recent analyst predictions following the release of soft prescription data.

The company reported earning 73 cents a share, or $778 million, before items, compared to 59 cents a share, or $637 million, in 2006.

Analysts surveyed by Thomson financial were looking for 72 cents a share on revenue of $2.93 billion. Genentech reported revenue of $2.91 billion before items (and including $3 million associated with the acquisition of Tanox), a 22% increase over operating revenue of $2.38 billion in the third quarter of 2006.

Despite the dose reduction in Avastin, the company beat the consensus target of $586 million, reporting sales of $597 million, compared to $435 million in the year-ago quarter. It also surpassed Street expectations of $585 million.

Genentech was expected to miss targets at least slightly for Rituxan, for non-Hodgkin's lymphoma and as a combination therapy for rheumatoid arthritis, and Lucentis, for wet-age related macular degeneration (AMD), on the basis of recent prescription data. The consensus was $588 million and $210 million, respectively. The company reported Rituxan sales of $572 million, compared to $509 million in the year-ago quarter, and Lucentis sales of $198 million, compared to $153 million in the same quarter in 2006.

Sales of breast cancer treatment Herceptin were $320 million, compared to $302 million in the year-ago quarter, and falling short of the consensus target of $339 million. Sales of Tarceva were $101 million compared to $100 million in 2006, and also falling shy of the Wall Street consensus of $111 million.

Genentech reaffirmed previous non-GAAP earnings guidance for fiscal 2007 of $2.85 to $2.95 a share, a 28%-32% increase in comparison to 2006. The consensus target is on the high end of that, at $2.95.

Shares were falling $1.13, or 1.5%, to $76.37 in after-hours trading.

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!
SYM TRADE IT LAST %CHG
AAPL $128.49 -0.67%
FB $80.90 1.63%
GOOG $573.21 -0.08%
TSLA $202.43 1.40%
YHOO $43.99 3.21%

Markets

DOW 18,096.90 -106.47 -0.58%
S&P 500 2,098.53 -9.25 -0.44%
NASDAQ 4,967.1410 -12.76 -0.26%

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