Celgene ( CELG) warned Tuesday night that first-quarter and 2009 earnings will be lower than expected, sending shares sharply lower in after-hours trading.

In an update to its financial outlook in advance of an investor presentation tomorrow, the Summit, N.J.-based drug maker said it expects first-quarter adjusted earnings per share to increase approximately 20% year over year.

This implies adjusted earnings of 43 cents per share, well below current Street consensus of 48 cents per share.

Celgene guided to first-quarter revenue of approximately $600 million, below the current consensus estimate of $647 million.

Moreover, Celgene reaffirmed adjusted 2009 earnings in the range of $2.05 to $2.15 a share, but said actual results will probably come in at the lower end. The company expected total revenue of $2.6 billion to $2.7 billion.

Currently the Street is looking for Celgene to earn $2.16 a share on an adjusted basis and total revenue of $2.77 billion.

The earnings warning sent Celgene shares plunging almost 10% to $40.05 in Tuesday after-hours trading. The stock closed the regular session down $1, or 2%, to $44.40.
At the time of publication, Feuerstein's Biotech Select model portfolio was long Celgene.

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

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