Genentech Misses Profit Target

Biotech bellwether Genentech (DNA Quote) posted its second-quarter results after the closing bell Monday, missing analyst consensus targets by 4 cents a share but beating on sales of its two lead products, Avastin and Rituxan.

Genentech shares, which closed the regular session down $2.34, or 3%, at $75.41, were losing another 17 cents to $75.22 in recent post-market trading Monday.

On a GAAP basis, the company earned 73 cents a share on revenue of $3.2 billion, up from earnings of 70 cents a share on roughly $3 billion in the same quarter a year ago.

On an adjusted basis, factoring out certain items, Genentech earned 82 cents a share, vs. 78 cents a share in the year ago quarter. Analysts, on average, were looking for 86 cents a share on revenue of $3.23 billion, according to Thomson Reuters.

Genentech reported individual U.S. drug sales of $650 million for Avastin vs. the $645 million consensus, $651 million for Rituxan vs. the $634 million consensus, $338 million for Herceptin vs. the $346 million consensus and $216 million for Lucentis, vs. the $204 million consensus.

Wall Street had heightened expectations for Avastin based on IMS prescription data for recent months, which pointed to consensus-beating sales.

The company also upped its full-year 2008 non-GAAP earnings guidance to the range of $3.40 to $3.50 per share. Its previous full-year EPS outlook ranged from $3.35 to $3.45.

Analysts are predicting earnings of $3.43 a share on revenue of $13 billion for the year.