) is set to report first quarter 2014 results on Apr 24 before
market opens. Last quarter, the company had delivered a negative
earnings surprise of 4.32%. Let's see how things are shaping up
for this announcement.
Factors at Play
While products like Revlimid, Abraxane and Pomalyst/Imnovid
should continue performing well, Vidaza sales will remain under
pressure due to soft demand in the U.S. (resulting from generic
competition). Sales of another cancer drug at Celgene, Thalomid,
will also continue to decline due to the availability of better
alternatives. Moreover, results will be affected by higher
operating costs as Celgene continues to develop its pipeline.
Celgene's efforts to market Pomalyst/ Imnovid and Otezla
effectively will also push operating costs higher. Otezla was
approved in the U.S. last month for the treatment of adults
suffering from active psoriatic arthritis.
Our proven model does not conclusively show that Celgene is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
(Expected Surprise Prediction) and a Zacks Rank of #1, 2 or 3 for
this to happen. That is not the case here as you will see below.
The Earnings ESP for Celgene is 0.00% since the Most Accurate
Estimate stands at $1.43, in line with the Zacks Consensus
Zacks Rank #3 (Hold):
Celgene's Zacks Rank #3 when combined with a 0.00% ESP makes
surprise prediction difficult.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements,
i.e., a positive Earnings ESP and a Zacks Rank #1, #2 or #3:
Forest Laboratories Inc.
) has an Earnings ESP of +4.55% and holds a Zacks Rank #3. Forest
Lab will be reporting fourth quarter fiscal 2014 earnings on Apr
29 before market opens.
) has an Earnings ESP of +3.34% and holds a Zacks Rank #2 (Buy).
Actavis will be reporting first quarter earnings on Apr 30 before
Eli Lilly and Company
) has earnings ESP of +4.29% and holds a Zacks Rank #3. Eli Lilly
will report first quarter earnings on Apr 24.
ACTAVIS PLC (ACT): Free Stock Analysis Report
CELGENE CORP (CELG): Free Stock Analysis
FOREST LABS A (FRX): Free Stock Analysis
LILLY ELI & CO (LLY): Free Stock Analysis
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