Genzyme Guides Upward

Driven by strong sales across its line of drugs and services, Genzyme ( GENZ) raised guidance for fourth-quarter earnings and bettered expectations for revenue.

The Cambridge, Mass., company said after the bell Tuesday that its revenue increased by 23% to $591 million, compared with the same quarter of 2003. Analysts polled by Thomson First Call were expecting sales of $582.3 million.

Genzyme now expects a pro forma profit per share ranging from $1.75 to $1.80, compared with earlier guidance of $1.65 to $1.75 per share. Wall Street was expecting EPS of $1.77 a share.

Revenue for the year will increase 39% to $2.2 billion, a bit better than analyst estimates of $2.19 billion.

Genzyme will provide detailed financial guidance for 2005 on Feb. 17. The company initially projects 2005 revenue of $2.5 billion to $2.7 billion. It also anticipates non-GAAP earnings of $2.08 to $2.16 a share. GAAP EPS will be lower than the projected non-GAAP EPS because it will reflect amortization, one-time items and contingent convertible securities.

The stock gained $2.04 a share after hours, an increase of 3.6%, to $59.10. Genzyme ended regular trading with a loss of 13 cents to $57.06.

More from Stocks

Dow Gets Swept Into Nasty Reversal Even as Nasdaq Posts New Record

Dow Gets Swept Into Nasty Reversal Even as Nasdaq Posts New Record

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

What Will GM Do With Cruise -- and Is Its Stock Worth $55?

What Will GM Do With Cruise -- and Is Its Stock Worth $55?

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

This Should Be Your Retirement Savings Plan When the Stock Market Crashes

This Should Be Your Retirement Savings Plan When the Stock Market Crashes