Why Incyte’s Q3 2018 Earnings Beat Revenue Estimates

Incyte’s revenues

Incyte (INCY) released its Q3 2018 earnings today. The company beat Wall Street analysts’ estimates for revenue but missed estimates for EPS. It reported EPS of $0.14 on revenues of $449.68 million in the third quarter of 2018, compared to estimates for EPS of $0.40 on revenues of $449.20 million.

Why Incyte’s Q3 2018 Earnings Beat Revenue Estimates

The above chart compares the revenues and EPS for Incyte since the first quarter of 2017.

Revenues in Q3 2018

Incyte reported GAAP revenues of $449.68 million, reflecting ~17.9% year-over-year revenue growth, compared to $381.53 million in the third quarter of 2017. The company’s revenues include milestone income of $20 million—excluding which, the non-GAAP revenues stood at $429.68 million for the quarter.

Product portfolio

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

  • Jakafi (ruxolitinib) net revenues increased 14% to $347.57 million, compared to $303.93 million during the third quarter of 2017.
  • Iclusig (ponatinib) net revenues, meanwhile, rose ~11% to $20.15 million, versus $18.1 million during the third quarter of 2017.
  • Olumiant (baricitinib) royalty revenues increased to $11.0 million, compared to $0.32 million during the third quarter of 2017.
  • Finally, Jakavi (ruxolitinib) royalty revenues rose ~23% to $50.92 million, versus $41.31 million during the third quarter of 2017.

The iShares NASDAQ Biotechnology ETF (IBB) invests 1.9% of its total portfolio in Incyte (INCY), 2.5% in BioMarin (BMRN), 8.0% in Biogen (BIIB), and 6.9% in Celgene (CELG).