Why Celgene Corporation Tumbled Today
Celgene (NASDAQ: CELG) is down 18.2% at 12:11 p.m. Thursday after releasing third-quarter earnings. It wasn't so much third-quarter revenue, which was up 10% year over year, or the adjusted earnings per share, which jumped 21% year over year, but the lowered guidance that has investors concerned.
The biotech adjusted both 2017 guidance and its long-term 2020 guidance that was originally given in early 2015, although it was the latter that was most concerning.
This year, Celgene is looking for revenue of "approximately $13 billion," which is at the low end of the previous guidance for revenue to fall between $13 billion and $13.4 billion. The lower expectations are due to a decrease in the expected sales of its anti-inflammatory drug Otezla by $250 million to $450 million. Guidance for adjusted earnings was actually moved to the high end of previous guidance, with current expectations to come in at $7.30 to $7.35 per share.
Source: Fool.com
