[Market Realist] Celgene Corp (NASDAQ:CELG)(TREND ANALYSIS) will announce its 3Q15 earnings result for the period ending September 30, 2015, Wall Street has estimated Celgene’s 3Q15 revenues to be about $2.4 billion, a strong growth of about 21.2% on a year-over-year (or YoY) basis. In 3Q15, Celgene is expected to register a net profit margin of ~42.4%, substantially higher than that earned by Biogen (BIIB) at 34.1%, as well as the margin projected for Amgen (AMGN) at ~34.2%, but lower than that projected for Gilead Sciences (GILD), at ~54.7%.
Hematology and oncology market
Celgene has a strong presence in the hematology and oncology market in the United States. The company earns about 84% of its total revenues from the multiple myeloma (or MM) market. Revlimid accounts for ~65% of Celgene’s total revenues. Celgene’s profit margins are thus heavily dependent on this drug, currently accounting for more than 50% share in the US MM market.
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Celgene Corp (NASDAQ:CELG) stock is currently trading 9.65% below its 52-week-high, 36.74% above its 52-week-low. The 1-year stock price history is in the range of $92.98 – $140.72. Celgene Corp (CELG) has a price to earnings ratio of 48.14 versus Healthcare sector average of 54.23. CELG stock price has outperformed the Nasdaq by 3.9%. The Biotechnology company is currently valued at $100.51 billion and its share price closed the last trading session at $127.14. The stock has a 50-day moving average of $117.71 and a 200-day moving average of $119.28.
Celgene Corp (CELG) current short interest stands at 16.37 million shares. It has decreased by 1% from the same period of last month. Around 3% of the company’s shares, which are float, are short sold. With a 10-days average volume of 4.8 million shares, the number of days required to cover the short positions stand at 3.5 days.
The company is expected to announce this quarter earnings on November 05, at consensus estimate of $1.09. Celgene Corp (CELG) reported last quarter earnings on July 23. The Biotechnology company announced earnings per share of $1.08 against a consensus Street estimate of $1.08, matching the average estimate. This corresponds to an increase of $0.28 compared to the same quarter of the previous fiscal year.
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There are currently twenty analysts that cover Celgene Corp stock. Of those twenty, sixteen have a Buy rating, three have a Hold rating and one has a Sell rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $147.28.
A recent analyst activity consisted of Jefferies reiterating their Buy stance on October 15. Jefferies decreased price target from $140 to $137. This corresponds to a 7.76% upside from the last closing price. On the date of report, the stock closed at $117.53.
JPM upgraded their Neutral rating to Overweight on October 1. On the date of report, the stock closed at $112.86.
Celgene Corp (CELG) has a debt to equity ratio of 105% compared to Healthcare sector average of 67.6%. The company has a current ratio of 3.34. This ratio should be higher than one (ideally two) and is an indicator to show if the company is able to finance its short term obligations. Indeed it should have higher short term assets to dispose in order to cover for its short term liabilities.
Company snapshot
Celgene Corporation is a global biopharmaceutical company. The Company focuses on the discovery, development, and commercialization of therapies designed to treat cancer and immune-inflammatory related diseases.
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