This is primarily in response to UtahChris’ question, but since my response deals primarily with one of his five stocks I started it as a new thread.
Hi Utah Chris – CELG is my third biggest position so I am pretty familiar with it. Chris, if you are serious about investing, it’s insane to get your EPS off the Nasdaq site (or any similar site). It’s your real money you are making decisions about. It’s worth the trouble of getting the earnings from the company’s quarterly reports. You can get the last two years of adjusted earnings in probably 10 minutes or less. They are in the first paragraph of each earnings report and they are all on the company’s investor relations site. You’ll find how to do it under the FAQ/Knowledgebase page #2176, under “evaluating a company”, or under posts 2003 and 2011.
Anyway, CELG is a very reliable grower. Here is what its revenues look like (in billions of dollars)
2012 – 1.25 1.37 1.42 1.42 = 5.5
2013 – 1.46 1.56 1.64 1.76 = 6.5
2014 – 1.73
Their predictions for revenue are (roughly):
2014 – 7.5
2015 – 9.0
2016 – no est
2017 – 13.5
Not many companies are willing to give estimates for 2017.
Here are their earnings. Since they just split I had to divide the earnings they gave by two, so there are some half cents. I’ll round one down and one up alternating.
2012 - 54 61 64 66 = 2.45
2013 - 69 76 78 75 = 2.98
2014 - 84
Their predictions for earnings are (roughly):
2014 – 3.60
2015 – 4.62
2016 – no est
2017 – 7.50
Here’s what their trailing earnings look like:
12 2012 - 2.45
03 2013 - 2.60
06 2013 - 2.75
09 2013 - 2.89
12 2013 - 2.98
03 2014 - 3.13
Chris, you really have to learn how to do this for yourself. It’s not hard to do and really doesn’t take very long, and you need it to make intelligent decisions.
They are a great company. Since they have one big product they have worked hard to diversify, and have lots of new meds coming on line, and they have partnered with many small companies, sponsoring their research with the option to buy the product or distribute the product if it is successful, or buy the little company.
Cash Flow from Operations was $2.2 billion for 2013, up 10% from 2012.
Repurchase of Shares For the full year of 2013, Celgene repurchased approximately 22.3 million shares (roughly 5% of the total outstanding). This was on top of all they invested in their own R&D, and R&D being done by other small companies.
The Company ended the year with $5.7 billion in cash.
Best,
Saul
For FAQ’s and Knowledgebase
please go to Post #2176