Today’s news: Alexion Pharmaceuticals (ALXN) reports strong earnings beat.
Alexion Pharmaceuticals (ALXN) reported yet another earnings and revenue beat this morning. Fourth-quarter non-GAAP EPS of $2.14 beat the consensus estimate of $1.82, far above the estimate range of $1.54-$1.96. Quarterly revenue of $1.13 billion beat the consensus estimate of $1.06 billion, driven by higher-than-expected sales of Soliris.
CEO Ludwig Hantson, Ph.D. commented, “2018 was a transformational year for Alexion. I am proud of our many accomplishments, including entering rare neurology and making SOLIRIS for gMG Alexion’s best launch ever, completing the Phase 3 program and launching ULTOMIRIS for PNH in the U.S., delivering groundbreaking Phase 3 data and submitting regulatory filings for SOLIRIS in NMOSD and rebuilding our pipeline through disciplined business development, all while continuing to grow our base business.”
Management’s projections for lower 2019 expenses led to higher projected operating margins. As a result, the company is forecasting 2019 non-GAAP EPS within a range of $9.10-$9.30, when Wall Street had been expecting $8.73.
Full-year 2018 EPS rose 35.2%. Management expects full-year 2019 EPS to rise another 16.2%. At a share price of 131, that gives the stock a P/E of 14.2, so it’s still a good growth and value stock.
ALXN is up 4.6% to 131 in pre-market trading. This is the fourth time that ALXN has risen to this level since the fourth-quarter stock market correction began, and it could rise higher today. To a certain extent, ALXN is defying gravity, having run up 38% from its December lows. The stock’s going to need to rest eventually. Unless you’re a trader, keep ALXN. I’ll give ALXN a Buy recommendation after it finally has a pullback. Hold.