Earnings Preview: Genzyme Corp. (NASDAQ: GENZ) Third Quarter 2010
Tuesday, October 12, 2010 8:59 AM

Genzyme Corp. (NASDAQ: GENZ) is scheduled to release its third quarter earnings before the opening bell on Wednesday, October 20, 2010. Analysts, on average, expect the company to report earnings of 52 cents per share on revenue of $1.10 billion. In the year ago period, the company reported earnings of 31 cents per share on revenue of $1.06 billion.

Genzyme Corporation operates as a biotechnology company worldwide. It focuses on rare genetic disease disorders, renal diseases, orthopaedics, cancers, transplant and immune diseases, and diagnostic and predictive testing areas.
In the preceding second quarter, the Cambridge, Massachusetts-based company's net income was $23,000 or breakeven per share, compared to $187.6 million, or 68 cents per share, in the year-ago quarter. On an adjusted basis, the company earned 18 cents per share in the second quarter. Revenue declined to $1.08 billion from $1.23 billion in the same quarter last year. Analysts, on average, expected the company to report earnings of 51 cents per share on revenue of $1.16 billion.

The company attributed the revenue decline to limited shipments of Cerezyme and Fabrazyme due to product supply constraints in 2010. At its last earnings call, the company said that it expects to be able to increase shipments of Cerezyme and Fabrazyme during the second half of the year. The company expects full-year Cerezyme revenue to be $725 million to $775 million and Fabrazyme revenue to be $200 million to $220 million.

For the third quarter, the company expects adjusted earnings to be 40 cents to 50 cents per share. Non-GAAP earnings per share in the fourth quarter is expected to be in the range of $0.90 to $1.00 per share.

At its last earnings call, the company lowered its full-year outlook fiscal year 2010 outlook. Non-GAAP earnings per share is anticipated in the range of $1.90 to $2.00 and total revenue in the range of $4.4 billion to $4.5 billion.

Previously, the company expected full year earnings of $2.80 to $3.20 per share and revenues of $5.23 billion to $5.53 billion.

In July, Sanofi-Aventis SA (NYSE: SNY) privately made an offer to acquire Genzyme Corp. for $69 per share in an all-cash transaction valued at about $18.5 billion. The French drug giant repeated the offer publicly in August. However, Genzyme rejected the offer on both the occasions. Early in October, Sanofi-Aventis went hostile with its bid, taking its $18.5 billion offer directly to Genzyme shareholders. However, Genzyme's board of directors once again rejected Sanofi-Aventis SA's offer and recommended that Genzyme shareholders do not sell their shares to the French drugmaker. The company that the offer price of $69.00 per share is inadequate and opportunistic, substantially undervalues the company, and said it failed to take into account Genzyme's valuable late-stage pipeline.

In September, Genzyme announced that the Japan's Ministry of Health, Labour and Welfare approved Synvisc, an injection treatment indicated for knee pain relief. In addition, the company said that it reached an agreement with Japan-based Teijin Pharma Limited to market Synvisc in Japan for the treatment of osteoarthritis of the knee.

Among other developments, Genzyme Corp last month agreed to sell its genetic-testing business to Laboratory Corp of America Holdings (NYSE: LH) for $925 million in cash.

In terms of stock performance, Genzyme shares have surged more than 45 percent since the beginning of the year.
Disclosure: Author doesn't own any of the stocks discussed here.


Symbol :


Market news:

More news


    Recent Estimates

AnalystFirm NameSymbolEPS Estimate
ja teremtipTTG Investments GE$0.28
markinsurace guru CINF$0.36