Despite Q1 Earnings Miss, Incyte Shares Jump On Revised FY22 Sales Guidance

• Incyte Corporation's (NASDAQ:INCY) Q1 adjusted EPS reached $0.55, compared to $0.67 posted a year ago. Analysts had estimated $0.68. 
• Sales increased 21% Y/Y to $733.24 million, missing the consensus of $750.66 million.
• The company's operating expenses increased 22% to $616.69 million, with the cost of sales up 45.8%, R&D costs up 15%, and SG&A costs up 36.3%.
• The company reported an operating income of $166.01 million, compared to $98.79 million posted a year ago.
• Product and royalty revenues increased 20% Y/Y due to higher Jakafi, Pemazyre, and Opzelura revenues and higher royalty revenues from Jakavi and Olumiant. 
• Jakafi net product revenues increased 17% Y/Y, primarily driven by growth in patient demand. 
• The 49% growth in Olumiant royalty revenues reflects an increase in net product sales due to the use of Olumiant for the treatment of COVID-19.
• Guidance: Incyte expects FY22 Jakafi net product revenues at $2.33 billion - $2.4 billion (versus prior guidance of $2.3 billion - $2.4 billion) and other Hematology/Oncology net product revenues of $210 million - $240 million.
• Price Action: INCY shares are up 1.32% at $77.06 during the market session on the last check Tuesday.