Celgene (CELG) Stock Rising Ahead of Earnings Results

Celgene (CELG) stock is up ahead of its 2015 third quarter earnings release tomorrow.
By Amanda Albright ,

NEW YORK (TheStreet) -- Celgene (CELG) - Get Report  will report its 2015 third quarter earnings results before the market open on Thursday morning. 

Analysts surveyed by Thomson Reuters estimate that the Summit, NJ-based biopharmaceutical company will report earnings of $1.22 per share on revenue of $2.4 billion.

Celgene reported earnings of 97 cents per share on revenue of $1.98 billion for the third quarter of 2014.

Last week, the company announced that its acute myeloid leukaemia treatment for older patients was approved by the European Commission.  

Shares of Celgene were up by 1.05% to $127.85 in mid-afternoon trading on Wednesday. 

Separately, TheStreet Ratings team rates CELGENE CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate CELGENE CORP (CELG) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, reasonable valuation levels, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 5.2%. Since the same quarter one year prior, revenues rose by 21.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Biotechnology industry and the overall market, CELGENE CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • The gross profit margin for CELGENE CORP is currently very high, coming in at 96.94%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CELG's net profit margin of 15.63% significantly trails the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • You can view the full analysis from the report here: CELG

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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