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Incyte’s Q2 2018 Earnings Beat Analysts’ Revenue Estimates

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Incyte’s revenues

Incyte (INCY) beat Wall Street analysts’ estimates for revenue but missed estimates for EPS. It reported EPS of $0.27 on revenues of $521.5 million in Q2 2018, compared to estimates for EPS of $0.34 on revenues of $473.8 million.

The above chart compares revenues and EPS since Q1 2017.

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Q2 2018 revenues

Incyte reported GAAP revenues of $521.5 million for Q2 2018, reflecting 59.7% growth in year-over-year revenues, compared to $326.4 million in Q2 2017. Its revenues include milestone income of $100 million. Excluding that income, the non-GAAP revenues were $421.5 million.

Product portfolio

Incyte’s revenue sources include Jakafi (ruxolitinib) sales in US markets, Iclusig (ponatinib) sales in European markets, and royalties from Jakavi and Olumiant (baricitinib) sales.

  • Jakafi net revenues increased 25% to $345.6 million in Q2 2018, compared to $276.0 million in Q2 2017.
  • Iclusig net revenues increased ~27% to $19.9 million in Q2 2018, compared to $15.6 million in Q2 2017.
  • Olumiant royalty revenues increased to $8.8 million in Q2 2018, compared to $0.9 million in Q2 2017.

Jakavi (ruxolitinib) royalty revenues increased ~39% to $47.1 million in Q2 2018, compared to $33.8 million in Q2 2017.

The First Trust NYSE Arca Biotechnology ETF (FBT) invests 3.4% of its portfolio in Incyte (INCY), 3.4% in Gilead Sciences (GILD), 3.4% in Seattle Genetics (SGEN), and 3.6% in Celgene Corporation (CELG).

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