Celgene's EPS Contain 'Few Surprises,' Baird Says

Celgene Corporation (NASDAQ: CELG) reported earnings on Thursday, and Baird analysts provided some commentary.

For the fourth quarter of 2014, the company posted non-GAAP EPS of $1.01, (versus consensus of $0.99, and Baird’s $1.01), and adjusted EPS for the full fiscal 2014 of $3.71 (versus consensus of $3.70, and Baird’s $3.72).

The company had already pre-released these results in early January. As Baird's report said, there were few surprises in the call.

However, some additional color on key worldwide product revenue figures was provided. The firm highlighted four points:

• “Revlimid geographic breakdown. Total Q414 Revlimid revenue $1.322B consistent with pre-released number. US Revlimid revenue of $798M beat by $19M, but ROW Revlimid revenue missed by a similar amount.
• Abraxane color. FY14 Abraxane revenue was pre-released at $848M, implying ~$236M for Q414, roughly in line with pre-existing consensus $237M.
• Otezla looking good. Otezla's beat was also pre-released, with Q414 revenue ~$48M, ahead of consensus estimate $44M.
• Nice quarter for Pomalyst. Pomalyst pre-released at ~$202M for Q414, a slight beat to pre-existing consensus $200M.”

Celgene’s management also commented on its guidance for product sales and adjusted EPS for fiscal 2015. Although they remain the same, at $9.0 billion -$9.5 billion and $4.60-$4.75, respectively, management said that the revenue guidance includes $100 million of negative F/X related impact.

Baird maintained an Outperform rating and a $139 price on Celgene. The target is explained as follows, “In that big-cap commercial biotechnology companies have recently traded on average between 20X and 30X current-year consensus EPS, we apply a multiple of 23 to our 2017 EPS estimate of $7.85, discounted back by 15%/year, to derive our 12-month price target of $139.”

Shares traded recently at $120.73.