Celgene Corporation (NASDAQ:CELG) stock was hit hard today following the release of its earnings report for the third quarter of 2017.
The big blow to CELG stock today came from a cut to its guidance for 2017. The company was previously expecting earnings per share to range from $7.30 to $7.35. Now it expects it will range from $7.25 to $7.35. Wall Street is looking for the company to report earnings per share of $7.31 for the year.
Celgene Corporation’s lower guidance also includes dropping its revenue outlook to approximately $13.00 billion. Its prior expectation had revenue coming in between $13.00 billion and $13.40 billion. This is bad news for CELG stock as analysts are estimating revenue of $13.23 billion for 2017.
Celgene Corporation guidance drop didn’t stop at 2017, the company also provided a new outlook for 2020 in its most recent earnings report. It is now expecting earnings per share for 2020 to be more than $12.50. It was previously expecting earnings per share of the year to be more than $13.00.
The 2020 guidance cut from Celgene Corporation also extends to its revenue. The biopharmaceutical company says that it now expects revenue for 2020 to range from $19.00 billion to $20.00 billion. Its previous guidance for 2020 revenue was $21.00 billion, or higher.
“In consideration of certain market dynamics and recent pipeline events, we are updating our 2020 outlook, and remain confident in our ability to deliver industry leading growth,” Mark Alles, CEO of Celgene Corporation, said in a statement. “Over the coming months, we look forward to sharing data supporting our innovative, next generation pipeline products and significant growth drivers.”
CELG stock was down 16% as of Thursday morning and is down 13% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.