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Tuesday, October 14, 2008
Genentech Net Rises 6.4%; Revenue Beats Estimates
FOXBusiness
Pharmaceutical and biotech firm Genentech (DNA) missed analyst estimates for earnings per share, but beat revenue estimates when it reported non-GAAP third quarter earnings of 81 cents per share on $3.41 billion in revenue. That was a revenue increase of 17%.
Analysts were expecting the company to report a profit of 88 cents per share on $3.36 billion in revenue, according to a poll by Thomson Reuters.
GAAP earnings increased 6.4% to $731 million, or 68 cents per share, from earnings of $685 million, or 64 cents per share, reported in the third quarter of 2007.
U.S. product sales increased by 14% to $2.45 billion, led by $704 million in sales for the lung, colon and breast cancer drug Avastin. Sales of the rheumatoid arthritis and non-Hodgkin’s lymphoma drug Rituxan increased by 15% to $655 million.
Analysts will be watching the actions of Swiss pharmaceutical giant Roche Holding (RHHBY) closely, as many suspect earnings from both companies to play a role in a possible takeover of Genentech by Roche. Genentech rejected the $89-per-share bid made by the pharmaceutical giant last July.
Genentech narrowed its outlook for 2008 to non-GAAP earnings to a range between $3.40 and $3.45 per share. Analysts are expecting 2008 earnings of $3.44 per share, according to Dow Jones Newswires.
Shares of Genentech were moving slightly higher in after-hours trading on Tuesday afternoon.
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