Celldex Therapeutics Inc. (O:CLDX) is having an incredible day in the market today, and for good reason. The company reported earnings for the fourth quarter beating expectations with regard to earnings and absolutely blowing away revenue expectations. Today, we'll talk about what we saw from earnings, how the market reacted to the news, and what we can expect to see from CLDX moving forward. So, let's get right to it...
CLDX Reports Strong Earnings
As mentioned above, CLDX reported its earnings before the opening bell today, and to the surprise of investors and analysts, the company produced incredibly positive results. Here's what we saw from the report...
- Earnings Per Share – In Terms of earnings per share, Celldex did relatively well. For the fourth quarter, analysts were expecting that the company would report a loss in the amount of $0.35 per share. However, the company reported earnings $0.02 better with a loss of $0.33 per share.
- Top-Line Revenue – While CLDX slightly beat earnings expectations, the company absolutely blew away expectations with regard to top-line revenue. In fact, the company nearly trippled analyst expectations. In the fourth quarter, analysts expected the company to generate revenue in the amount of $640 thousand. However, the company actually reported revenue in the amount of $1.8 million.
As you can see from the information above, it's clear that CLDX had an incredible earnings release. While earnings were slightly ahead of expectations, investors are incredibly excited about what we've seen from revenue.
How The Market Reacted To The News
As investors, we know that the market is moved by the news. When there is positive news with regard to a publicly traded company, we can expect to see gains in the value of the stock associated with that company. Adversely, when there is poor news with regard to a publicly traded company, we can expect to see declines in the value of the stock associated with the company. Another thing we've learned over the years is that there are few pieces of news that have the ability to move the needle in the market quite like earnings. So naturally, after producing solid earnings, it only makes sense that we're seeing gains in the value of CLDX today. Currently (11:14), the stock is trading at $7.17 per share after a gain of $0.30 per share or 4.37% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have a relatively bullish expectation of what we can expect to see from CLDX. The reality is that through today's earnings report, the company has shown that it has an incredible ability to increase revenue in a big way with very little to work with. Celldex has an incredible pipeline, strong management team, and the ability to generate growth. So, that's exactly what I'm expecting to see in the long run... growth