The biotechnology stock, an AAP holding, missed revenue estimates but beat earnings expectations. Celgene also saw sales of Revlimid, its number one-selling drug, come in lower than expected. Cramer noted the company also reaffirmed its previous guidance but did not raise it.
Currently, the stock trades at 18 times earnings, in line with several large-cap pharmaceutical companies despite its growth rate. Cramer suggested that investors are not willing to pay up for companies that are "spending for earnings."
He pointed out a similar circumstance with Under Armour (UA) where the company is growing incredibly fast but the stock is lower following its top- and bottom-line earnings results.
- - Written by Bret Kenwell in Petoskey, Mich.