Can Celgene’s Revenues Impress the Market in Q4 2018?



Revenue guidance

On January 7, Celgene (CELG) issued a press release announcing that the company earned revenues of $15.2 billion for fiscal 2018, which is in line with the guidance provided in its third-quarter earnings conference call. In the third quarter, the company reported revenues of $3.89 billion, a YoY rise of 18.2%. The company has managed to surpass the consensus revenue estimate by $40 million. According to the press release, Celgene is expected to report revenues of $17.0 billion–$17.2 billion for fiscal 2019, a YoY rise of 12% at the midpoint. The company has also reiterated its fiscal 2020 long-term revenue target of $19.0 billion–$20.0 billion.

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However, on January 3, Bristol-Myers Squibb announced the proposed acquisition of Celgene for a consideration of $74 billion. This deal is expected to be completed in the third quarter of 2019. In this backdrop, the estimates provided by Celgene until 2020 may be indicative of its revenue contribution to the combined Bristol-Myers Squibb and Celgene company. To know more about the Bristol-Myers Squibb and Celgene deal, please refer to What to Expect from BMY’s Celgene Acquisition.

Revenue projections

Wall Street analysts expect Celgene to report revenues of $15.24 billion in fiscal 2018, a YoY rise of 17.16%. The company is also expected to report revenues of $16.99 billion in fiscal 2019, a YoY rise of 11.55%. Wall Street analysts have also forecasted Celgene’s fiscal 2020 revenues to be $19.14 billion, a YoY rise of 12.61%. Wall Street analysts have projected Celgene’s revenues to be close to $3.99 billion in the fourth quarter of 2018, a YoY rise of 14.48%.

In the next article, we’ll discuss earnings estimates for Q4 2018 and fiscal 2018 in greater detail.


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