Genzyme Earnings Rise, but Sales Fall Short - TheStreet

Genzyme Earnings Rise, but Sales Fall Short

Genzyme reports higher second-quarter earnings, but revenue falls below Wall Street expectations.
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reported higher second-quarter earnings Wednesday, but revenue fell below Wall Street expectations and the company has reduced sales and profit expectations for the year.

The Cambridge, Mass.-based biopharmaceuticals firm said net income rose to $192.2 million, or 70 cents a share, compared with $69.6 million, or 25 cents a share, in the year-ago quarter, which was impacted by the payment of a large licensing fee.

Adjusted earnings totaled 85 cents a share, matching the Street's consensus estimate.

However, total revenue of $1.23 billion in the June quarter, up 5% year over year, was short of expectations of $1.26 billion. Genzyme's top-line performance was negatively affected by the shutdown of its manufacturing plant outside Boston due to a viral contamination. The closure of the plant cost the company $13 million in quarterly sales of its drug Cerezyme.

Genzyme shares were down 4.5% to $53.38 in recent trading.

Genzyme said the cleanup of its Boston-area manufacturing plant is complete and drug production will re-start this month.

The company reduced its 2009 revenue guidance to a range of $4.6 billion to $5 billion from $5.15 billion to $5.35 billion. The Street was currently at $4.96 billion.

Likewise, earnings guidance for the year was taken down to a range of $1.74 to $2.29 a share from $3.02 a share. On an adjusted basis, Genzyme expects 2009 earnings in the range $2.35 to $2.90 a share from $3.52 a share.

The current Street estimate for adjusted earnings stands at $2.60 per share.

Adam Feuerstein writes regularly for In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback;

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