Revlimid. Source: drugs.com
Celgene (CELG) reported Q3 earnings Thursday and it did not go well. Investors did not like what they heard and pummeled CELG, driving the stock down over 15%. The company missed on revenue by $120 million, but delivered an earnings beat. Below are three reasons why I believe the stock sold off.
Weak Guidance
Managing Wall Street's expectations is highly-important for a publicly-traded company. Analysts hate negative surprises; Celgene surprised everyone with weak full-year guidance. Management gave full-year revenue guidance of approximately $13.0 billion. That was slightly below the mid-point of $13.2 billion previously provided.
